2017 FM Global Resilience Index ranks countries and territories according to enterprise resilience to disruptive events

The 2017 FM Global Resilience Index has been published. The annual index, which is online and interactive, ranks 130 countries and territories by their enterprise resilience to disruptive events. Now in its fourth year, the index provides a unique resource to help business executives site facilities, select suppliers, evaluate established supply chains and identify customers who may be vulnerable.

Users of the index can now investigate 12 quantified resilience drivers related to each country’s economic strength, risk quality and supply chain condition. The index also ranks countries for overall enterprise resilience.

Switzerland occupies the number-one ranking, reflecting high scores for its infrastructure, local supplier quality, political stability, control of corruption and economic productivity. Haiti ranks at the bottom of the index due in part to its high natural hazard exposure and poor economic conditions.

Three new resilience drivers were added to the index this year:

• Inherent cyber risk: reflects a country’s vulnerability to a cyber attack and its ability to recover.
• Urbanization rate: serves as a proxy for stress (on water supplies, power grids and other infrastructure) that would be exacerbated by natural disasters such as windstorms, flood and earthquakes.
• Supply chain visibility: reflects the ability to track and trace consignments across a country’s supply chain.

Other drivers of resilience that form the index include: productivity, political risk, oil intensity, exposure to natural hazard, natural hazard risk quality, fire risk quality, control of corruption, quality of infrastructure and quality of local suppliers.

The new resilience drivers show that:

For companies concerned by the increasing incidence of cyber attack, oil-rich Saudi Arabia has emerged as a country with above-average inherent cyber risk. Its high Internet penetration, combined with a limited cyber security industry, make it a more vulnerable target. Developing India, by contrast, with its growing information technology industry, emerges as a country with below-average inherent cyber risk.

For companies aware of the heavy toll of natural disasters, Sweden has above-average resilience due, in part, to its lower-than-average exposure to hazards such as windstorms, flood and earthquakes. On the other hand, flood-prone Bangladesh, a major manufacturing hub for apparel and textiles, ranks toward the bottom of the index.

For companies with global supply chains, Germany, a major exporter and importer, ranks near the top in resilience, driven in part by its strong ability to demonstrate where parts, components or products are in transit. Russia ranks below average in this respect.

Example country rankings for overall resilience:

* Based on 12 resilience drivers. China and the United States are segmented into three regions to reflect disparate exposure to natural hazards.

Use the 2017 FM Global Resilience Index