Mitigating Risk Means Evaluating Emerging Nation Resilience

For FM Global, one of the world’s largest commercial property insurers, mitigating risk means evaluating emerging nation resilience. The Johnston, R.I.-based consultancy has just released its 2014 FM Global Resilience Index, showing Norway, Switzerland, and Canada to be the top three nations most resilient to supply chain disruption.

“Natural disasters, political unrest and a lack of global uniformity in safety codes and standards can all have an impact on business continuity, competitiveness, and reputation,” says Jonathan Hall, executive vice president of FM Global. “As supply chains become more global, complex and interdependent, it’s essential for decision makers to have concrete facts and intelligence about where their facilities and their suppliers’ facilities are located.”

FM Global commissioned analytics and advisory firm Oxford Metrica to develop these rankings with the aim of bolstering intelligent dialogue around building resilience and avoiding supply chain disruption. The data comes from a combination of independent third-party sources and FM Global’s RiskMark benchmarking algorithm that measures the risk quality of more than 100,000 insured commercial properties worldwide.

China’s regions rank 61, 66, and 75, with Shanghai finishing particularly low as a result of poor risk quality due to acute natural hazards. The biggest gains since 2013 are in Bosnia and Herzegovina, climbing 19 places due to improvements in the country’s political risk and in the quality of local suppliers. Conversely, Bangladesh declined significantly because of poor natural hazard risk management and fire risk management.

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