Risk Taking

There is a prejudice among Americans and Europeans that the Japanese are not risk takers. It is believed that Japanese are less willing to take risks with their own bodies (such as riding roller coasters) and are less willing to take risks in business (such as investing in "junk" bonds) than Europeans or Americans are.

Sometimes these foreigners' prejudices can be helpful to a Japanese business. When a Japanese buys a product or buys a business, the foreign seller will believe the Japanese who says that he wants to pay a lower price because "Japanese are not risk takers." The same argument can be used when a Japanese businessperson is selling a product. A foreign businessperson will believe the Japanese who says, "As a Japanese, I will never take the risk of selling you something unless it is high quality and I can meet all of your expectations."

In the past, American and European prejudice has made it possible for many Japanese businesses to succeed; Japanese products are considered "low risk, high quality". There are many additional businesses that can benefit in the future because of the prejudice that Japanese are not risk takers. For example, Japanese banks should be much more successful overseas -- so should Japanese investment funds, Japanese brokerage firms and Japanese accounting firms. A vast horizon of potential business remains to be developed with people who want to engage in business with low risk.

There are also drawbacks to this prejudice. Many buyers of creative talent, and businesses in high tech and entertainment may be reluctant to work with Japanese businesses because they believe that Japanese are risk adverse. It has taken a long time for Japanese fashion designers and film makers to be appreciated in America and Europe, possibly because of this prejudice.

As individuals, Japanese business people can overcome this prejudice. On a person-to-person level, Japanese business people can emphasize that Japanese businesses have been successful in many risky fields.

When dealing with individual Americans and Europeans, the most successful way to influence their opinions is to offer them facts that are easy to agree with. Offering one fact can make them interested, offering two facts suggests that your point of view is useful, offering three facts can often change their opinions.

Three facts that can convince many individual foreign businesspeople that Japanese are successful risk takers are: One, Japanese business invented the Walkman and made it a worldwide success. Two, Japanese businesses created and succeeded in the electronic games world with Pokemon, Nintendo and Play Station. Three, Japanese business have taken a very large investment risk and succeeded with the hybrid automobile -- the Toyota Prius and the Honda Insight. Three perfect examples that Japanese successfully take risks.

Foreign business people know these three examples and will accept them as evidence of Japanese risk taking. Presenting these examples can change prejudices. Americans and Europeans are willing to appreciate Japanese risk taking when it is discussed with them in a personal conversation.

Prejudice about Japanese not being risk takers is generally a benefit to Japanese business. When it is not beneficial, it is easy to persuade foreigners that the prejudice is false by talking about it on a personal level.

 

Michael Phillips Nov. 2001