FM Global Index: 10 Countries Most Vulnerable to Supply Chain Disruption

The 2014 FM Global Resilience Index was released last week.

According to a press release by FM Global, the index is the first of its kind and is an online, data-driven tool and repository ranking the business resilience of 130 countries. In particular, the index provides data on country-by-country susceptibility to supply chain disruption.

The Dominican Republic, Kyrgyzstan and Venezuela are at the bottom of the list, classed as the nations least resilient to supply chain disruption.

“Natural disasters, political unrest and a lack of global uniformity in safety codes and standards all can have an impact on business continuity, competitiveness and reputation,” said Jonathan Hall, executive vice president of FM Global. “As supply chains become more global, complex and interdependent, it is essential for decision makers to have concrete facts and intelligence about where their facilities and their suppliers’ facilities are located. The Resilience Index is a dynamic resource to better understand unknown risk in order to strategically prioritize supply chain risk management and investment efforts.”

At the top of the list are Norway, Switzerland and Canada, classed as most resilient to supply chain disruption. Some other key findings of the 2014 report include:

  • The United States and China are each divided into three separate regions because the geographic spread of these countries produces significantly disparate exposures to natural hazards. All three regions of the U.S. rank in the top 25 and China’s regions rank 61, 66 and 75. China’s weakest grouping, which includes Shanghai, ranks particularly low as a result of poor risk quality due to acute natural hazards.
  • The biggest riser since 2013 is Bosnia and Herzegovina, climbing 19 places due to improvements in the country’s political risk and in the quality of local suppliers.
  • Bangladesh is one of the top fallers due to declining quality of both natural hazard risk management and fire risk management.

 

For more information, see the press release here: http://www.fmglobal.com/page.aspx?id=906102014