Given the myriad of issues facing supply chains, including a warming climate, a vulnerable economy, and geopolitical risks, the recently released 2023 FM Global Resilience Index aims to help business leaders make choices on where to locate facilities, invest in risk mitigation, cultivate markets, source supplies and form strategic partnerships. The index ranks countries on 15 measures of economic, risk quality and supply chain resilience.
“When potential disruptions loom, a resilient company can mitigate losses of revenue, market share and growth – losses that may have been unrecoverable,” said Penti Tofte, staff senior vice president, data analytics, FM Global
The report discusses some prevailing risks and offers insights:
Climate Risk
Although climate change is a global concern, climate risk varies among nations. Wet areas are destined to become wetter, dry areas drier, floods more severe, and wildfires more devastating. Sea levels are rising, ice is melting, crop yields are declining, and water in much of the world is at a premium. Hurricanes hold more water and linger over their targets.
Regions with greater wind and flood exposure and weaker building codes tend to be less resilient, attributes reflected in the index’s climate risk exposure and climate risk quality drivers.
Economic Performance
The global economy is another concern, with growth forecast by the International Monetary Fund to fall from 3.4 % in 2022 to 2.8% in 2023.
Advanced economies are ex[]pected to see an especially pronounced growth slowdown, from 2.7% in 2022 to 1.3% in 2023.
We are “entering a perilous phase during which economic growth remains low by historical standards and financial risks have risen, yet inflation has not yet decisively turned the corner,” writes IMF Economic Counsellor Pierre-Olivier Gourinchas.
GDP per capita) generally have more resilient business environments. Health expenditure per capita is a measure of economic resilience. Political risks, energy intensity, and high urbanization rates also affect resilience. Data on all of these economic drivers for each country are found in the index.
(For additional insights click here.)
Country Ranking
The following are the top 10 list of countries.
1. Denmark
2. Singapore
3. Luxembourg
4. Germany
5. Switzerland
6. United States Region 3 (Central)
7. United States Region 1 (East)
8. Sweden
9. Finland
10. Austria
