Never has resilience been a more critical attribute for businesses than in a world shocked by the COVID-19 pandemic. As companies look to make well-informed strategic decisions about the geographies they operate in to help them quickly bounce back, the just-released 2020 FM Global Resilience Index may provide insight into which countries are best poised for a robust rebound.
"Especially after a crisis like COVID-19, resilience is critical for people, countries and businesses," says Kevin Ingram, executive vice president and chief financial officer of FM Global. "A country's ranking in the 2020 FM Global Resilience Index is a good indication of how its business environment will fare and how quickly organizations there might rebound after taking the economic blow of the coronavirus. These are critical insights for businesses making far-reaching choices as they build facilities, extend supply chains and cultivate new markets."
What is the Resilience Index?
The annual index is the definitive ranking of nearly 130 countries by the resilience of their business environments to disruptive events. It provides companies with objective information about countries' economic, risk quality and supply chain resilience—factors that create a springboard for businesses working to recover from the pandemic.
Along with outlining the post-pandemic business landscape, the FM Global Resilience Index stands as a dynamic reminder that conventional business risks—hurricane, flood, drought, fire, earthquake, cyber attack, oil shock and political upheaval—continue to threaten operations and overall value. That’s worth remembering during the Atlantic hurricane season, which runs from June through November and is projected to see above-normal activity.
"A unique event like a contagious viral disease unfortunately does not preclude other terrible events," says Ingram. "Only diligent, rational risk-and-resilience analysis and loss prevention is sufficient for preserving a company's value through chaos."
How to use the index
Use the index to compare countries quickly and easily using the tool's easy-to-use graphical and numerical interface. Glean more powerful insights by examining five-year country trends and learning what drives each country's resilience. Download data for further analysis and inclusion in your reports and presentations.
Index data like this is designed to help CFOs and other business leaders make prudent business decisions as they site facilities, extend supply chains and cultivate customers. A lack of business resilience can result in long-lasting effects on market share, growth opportunities and investor confidence—all contributors to business value.
"Resilience is ultimately a product of the choices businesses make, including where they do business and how they invest in each location," says FM Global's Sanjay Chawla, senior vice president and chief investment officer. "The Resilience Index is designed to make these choices clearer as executives weigh the regular strategic reasons—logistics, labor force and market opportunity—for selecting particular geographies."
How to choose resilience
Make smart decisions around disease-disrupted operations and supply chains. Choose resilience—and use the FM Global Resilience Index to help find it.
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