Establishment of “Disaster Risk Finance – Industry-Academia Joint Research Division” with Kyoto University – Realization of a sustainable society that adapts to increasingly severe disasters-

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The Disaster Prevention Research Institute, Kyoto University  (Director: Eiichi Nakakita) and Sompo Japan Insurance Inc. (President and CEO: Giichi Shirakawa, hereinafter “Sompo Japan”) and Sompo Risk Management Inc. (President and CEO: Yoji Nakajima, hereinafter “Sompo Risk”) signed an agreement of cooperation to establish the “Disaster Risk Finance- Industry-Academia Joint Research Division” (hereinafter “this research division”), which aims to “realize a sustainable society that adapts to increasingly severe disasters”, in June 2023. It will be set up at the Disaster Prevention Research Institute of Kyoto University and the joint research project will proceed for the coming three years.

 

  1. Background and Purpose

 

To build sustainable business continuity system by improving resilience against natural disasters which are increasing in frequency and intensity due to the effects of climate change, which also have become a priority of business industry.

Japan is a country prone to natural disasters. In order to build a sustainable business continuity system, it is necessary to improve evaluation technology that takes into account corporate attributes and supply chains. Therefore, Sompo Japan and Sompo Risk are working together to develop cutting-edge technologies and develop frontiers for social implementation in order to create a resilient society in Japan.

The collaboration with the Disaster Prevention Research Institute of Kyoto University, which is the first of its kind within the Kyoto University, industry, academia, and government will contribute data and human resources to develop quantitative evaluation methods for the financial impact of disasters, and to research and develop financing methods for business continuity using evaluation technologies.

 

Overview of the research department:

Name of the project:

Disaster Risk Finance Industry-Academia Collaborative Research Division

 Location:

Disaster Prevention Research Institute, Kyoto University

Duration of the Research Project:

June 2023 to May 2026

 

  1. Main research contents:

 

  1. Sophistication of flood disaster risk modeling for all of Japan
  2. Modeling the recovery process from business interruption for businesses targeting natural disasters
  3. Development of financing methods that contribute to disaster mitigation and early recovery
  4. Building a data utilization network
  5. Support for improving disaster resilience using a risk visualization platform

 

  1. About future development

Appropriate financial support and early recovery of supply chains are essential for the business continuity of companies, especially SMEs, in the event of a disaster. This research division uses business activity data to analyze the business and finances of companies (including supply chains) in the event of a disaster, visualize the factors and processes involved in corporate recovery using advanced technology, and develop effective solutions. Through such services, it is aimed to contribute to improving the disaster resilience of client companies.