New drivers of resilience: urbanisation, cyber risk and supply chain visibility
For today’s global enterprise, remaining resilient is an increasingly challenging endeavor. Supply chains and business networks often span the globe, and savvy organizations must ensure they understand the relative risks of countries in which they do—or plan to do—business. The FM Global Resilience Index was created to help executives understand the business resilience of the countries in which they operate so they can gain powerful insights for strategic decision-making.
Newly updated and improved for 2017, the index is the only annual ranking of 130 countries and territories according to their enterprise resilience to disruptive events. Rankings are calculated based on an equally weighted composite of 12 core drivers that affect the enterprise resilience of countries significantly and directly.
What is new in the 2017 index?
A good index should evolve as better data and analytics become available. A significant enhancement to the index this year is the inclusion of three new drivers of enterprise resilience: urbanization rate, inherent cyber risk and supply chain visibility. Another enhancement is the use of local code information to refine the index’s risk quality drivers to be more representative of each country’s natural hazard and fire risk quality. Country rankings also have been retro-calculated, using the new and revised data, to make the results available for the past five years.
FM Global makes the Resilience Index – and a suite of other resources to help executives make informed business decisions – available free to the public on fmglobal.com (under Research & Resources => Tools and Resources). Featuring a new and easy-to-use interface, the index can be accessed anytime.
In June, FM Global will release a personalized client-centric version of the index providing an account-level summary of the enterprise resilience of their properties throughout the world. This strategic overview will be available to FM Global policyholders by simply logging in to FM Global’s client portal – known as MyRisk®.
How the FM Global Resilience Index works
The index is powered by data from leading global resources, including the United Nations, the World Bank, the World Economic Forum and the International Monetary Fund. These sources combine with FM Global’s proprietary data – generated by the company’s 1,800 property risk engineers who inspect more than 100,000 locations annually around the world – to make the index robust and reliable.
“The idea really is that this is aimed at the c-suite and it’s to help executives understand the relative resilience of countries to business disruption.”
Ronnie Gibson, STAFF VICE PRESIDENT MANAGER OF BRAND EXPERIENCE AT FM GLOBAL IN BUSINESS INSURANCE
The 2017 FM Global Resilience Index aggregates 12 drivers of resilience into three factors (categories)—economic, risk quality and supply chain.
Understanding countries within this context has never been easier, nor has quick access to the data been more manageable. Use it to gain new, strategic insights for your business needs – potential expansion and investment or to assess enterprise resilience.
This article originally appeared in Reason magazine Issue 1, 2017, which you can read here.