Commercial property insurer FM Global has recently launched its highly anticipated 2023 resilience index, an annual tool that assesses countries based on 15 indicators of economic, risk quality, and supply chain resilience. Widely regarded as a crucial resource for site selection, supply chain design, and market targeting, this interactive tool helps businesses navigate critical challenges such as climate change, economic volatility, and geopolitical tensions.
FM Global’s resilience index has gained recognition as a valuable integration for numerous global organizations, thanks to its data-rich analysis that facilitates strategic decision-making. By providing comprehensive insights, the index empowers businesses to make informed choices amidst the complexities of today’s risk landscape.
Top Countries for Supply Chain Resilience
According to the latest findings from the FM Global 2023 Resilience Index, the top 10 countries for supply chain resilience are as follows:
- United States Region 3 (Central)
- United States Region 1 (East)
Conversely, Ethiopia, Venezuela, and Haiti find themselves at the bottom of the rankings, securing the 128th, 129th, and 130th spots, respectively.
Notable Changes in Rankings
The Dominican Republic experienced the most significant rise in the rankings, climbing from 99th place to 95th place. This improvement can be attributed to the country’s higher ranking in climate risk quality. On the other hand, Lebanon suffered the greatest decline, dropping from 101st to 106th place due to its lower healthcare spending rank.
Major Economies and Their Impact
The index sheds light on the complexities that major economies introduce to the rankings and the challenges faced by international firms and investors seeking stability in a dynamic global landscape. Singapore, known for its robust economy, efficient supply chain management, and advanced risk management practices, maintained its historically high second-place ranking. Japan, Hong Kong, and Korea also secured positions in the top quarter of the index due to their strong economic and supply chain resilience.
China and India, both economic powerhouses, along with other Southeast Asian countries, dominate the middle sections of the index. This segment has historically been influenced by factors such as natural hazard exposure, geopolitics, and infrastructure quality.
Insights from FM Global
FM Global’s Asia operations manager and operations senior vice president, Tan Hian Hong, emphasized the relevance of the index in addressing critical concerns faced by companies worldwide. He stated, “Asia remains home to some of the most resilient economies on the planet, as well as some of its least, reflecting the region’s continued competitiveness in an evolving risk landscape dominated by climate and economic concerns, as well as its challenges. With its global perspective, the FM Global Resilience Index provides you with a sharp lens to examine the risk profiles of new developments or supply chain expansion in Asia or around the world, reflecting our focus on robust science-based data to keep your business moving.”
FM Global’s Strong Position
Earlier this year, FM Global received a “AA” financial strength rating from Fitch, a testament to the company’s long-term underwriting profitability, exceptional capitalization, and competitive advantages derived from its engineering expertise and global presence in specialty commercial property insurance markets.
As businesses navigate an increasingly complex and interconnected world, the FM Global 2023 Resilience Index equips them with the necessary tools to assess risks, make informed decisions, and foster resilience in the face of an ever-evolving landscape.