Norway most ‘resilient’ country in the world

Norway most ‘resilient’ country in the world

Venezuela comes bottom of the league table of countries best suited for companies seeking to avoid disruptions in their global supply chain operations, according to an insurer survey. FM Global’s Resilience Index, which is compiled by Oxford Metrica, puts Norway in first position on its list of the 130 countries with Taiwan emerging as fastest riser.

The three regions of the United States – East, Central and West – all rank in the top 25, while China’s three regions are placed mid-table at 63rd (Region 3), 64th (Region 1), and 69th (Region 2) respectively.

Updated annually by commercial property insurer FM Global, the FM Global Resilience Index gauges resilience in nine dimensions, using vetted data from sources such as the International Monetary Fund, World Bank, World Economic Forum and FM Global’s database of more than 100,000 client locations.

The Index is generated by combining three core factors of business resilience to supply chain disruption: economics, risk quality and qualities of the supply chain itself. The drivers include GDP per capita, political risk, vulnerability to oil shortages and price shocks, exposure to natural hazards, quality of natural hazard risk management, fire risk, control of corruption and the quality of infrastructure and local suppliers.

Beyond natural disaster risk, China’s challenges range from “poor accountability and transparency, high levels of perceived corruption and growing security concerns to problems in its financial sector, especially with regard to the fragile position of its banks, the Index stated.

Ukraine, embroiled in conflict with Russia, poses significant challenges for companies considering expanding their supply chains there and it fell 31 places to 107th.

Thailand, one of the world’s top exporters, fell 20 places to 82nd of 130 countries despite the years that have passed since the popular manufacturing destinations devastating floods.

Thailand’s ranking reflects poorer perceptions of the country’s infrastructure (transport, telephony and energy) and the quality of local suppliers as well as a decline in political stability and the quality of fire risk management. These issues compounded the misery of the country’s 2011 floods that caused an estimated US$45bn in losses and business disruption worldwide.

In contrast Taiwan soared 52 places in the annual rankings to 37th overall, a bigger rise than any other country. Its ascension is mainly due to a substantial improvement in the country’s commitment to risk management, as it relates to both natural hazard risk and fire risk.

“Business leaders who don’t evaluate countries and supply chain resilience can suffer long-term consequences,” said Bret Ahnell, executive vice president, operations, FM Global in a statement. “If your supply chain fails, it can be difficult or impossible to get your market share, revenue and reputation back.”

Top 10 Countries – Most Resilient to Business Supply Chain Disruption 
1. Norway
2. Switzerland
3. Netherlands
4. Ireland
5. Luxembourg
6. Germany
7. Qatar
8. Canada
9. Finland
10. United States – Region 3 (Central)

Bottom 10 Countries – Least Resilient to Business Supply Chain Disruption
121. Tajikistan
122. Egypt
123. Pakistan
124. Jamaica
125. Honduras
126. Dominican Republic
127. Nicaragua
128. Mauritania
129. Kyrgyz Republic
130. Venezuela

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