Europe tops FM Global’s resilience ranking
European countries are some of the most resilient business environments in the world, according to FM Global’s 2020 ranking, which puts them ahead of the pack in staging a recovery from the current Covid-19 pandemic.
FM Global says resilience “is never more critical than in a world shocked by pandemic”. It adds that the higher-ranked countries in its 2020 Resilience Index of 130 countries have “strong foundations for a robust rebound”.
European countries, led by Norway in the number one spot for the second consecutive year, take eight of the top ten positions. Switzerland climbs one place to take second in the 2020 rankings, with Denmark in third. Other European countries in the top ten are Germany, Sweden, Finland, Luxembourg and Austria. US central and US eastern took ninth and tenth place.
The ranking measures each country’s business resilience by three main drivers – economic, risk quality and supply chain. It covers a total of 12 factors including political risk, natural catastrophes, cyber risk, corporate governance and supply chain visibility.
The least resilient country this year is Haiti, followed by Venezuela, Ethiopia, Chad and Lebanon.
“When recovering after a crisis like Covid-19, resilience should be a key consideration for people countries and businesses,” commented Adriano Lanzilotto, operations vice-president and client service manager for FM Global’s London operations. He said the index shows how a country’s business environment will hold up in Covid-19 recovery and how quickly businesses in those countries can bounce back.
“This insight can be vital for making significant decisions as they establish or relocate facilities, expand supply chains and engage with new markets,” Mr Lanzilotto said.
FM Global says the pandemic will not preclude other business risks and more traditional threats. Those such as fire, flood and hurricanes will continue to test resilience, it added. This is worth remembering on the eve of an Atlantic hurricane season projected to see above-normal activity, the report notes.
North Macedonia made the greatest improvement in resilience, climbing 23 places to 77th after it recorded the largest drop in the 2019 survey. Taiwan climbed 14 places to 29th place after improvements to its urbanisation rate and natural-hazard risk quality. Nicaragua was the biggest faller in the index, down 9 places to 121st. This was a result of increases in cyber and political risk, as well as decreased control of corruption.
FM Global’s ten most resilient countries
- Norway
- Switzerland
- Denmark
- Germany
- Sweden
- Finland
- Luxembourg
- Austria
- Central US
- Eastern US
FM Global’s ten least resilient countries
- Haiti
- Venezuela
- Ethiopia
- Chad
- Lebanon
- Iran
- Mozambique
- Mali
- Nepal
- Nicaragua
