Using the FM Global Resilience Index
As COVID-19 causes disruption across the globe, governments, business leaders, and the general public are seeking clarity about the road ahead. With numerous different sources of information, from both trusted and untrustworthy sources, it is understandable that many are unsure of what may actually happen in the second half of 2020 and beyond.
The 2020 update to the FM Global Resilience Index can provide some insight for those business leaders and individuals, by providing objective information about countries’ economic, risk quality and supply chain resilience – factors which may all influence how a country recovers from the pandemic. As a data-driven tool, the FM Global Resilience Index can be used as a source of impartial and reputable information, providing business leaders with valuable insights into resilience.
The Resilience Index ranks 130 countries and territories according to the resilience of their business environments. This ranking is drawn from 12 equally weighted measures of resilience in three categories; economic factors, risk quality factors and supply chain factors.
|THE FM GLOBAL RESILIENCE INDEX
|ECONOMIC||RISK QUALITY||SUPPLY CHAIN|
|Productivity||Exposure to Natural Hazards||Control of Corruption|
|Political Risk||Natural Hazard Risk Quality||Quality of Infrastructure|
|Oil Intensity||Fire Risk Quality||Corporate Governance|
|Urbanisation Rate||Inherent Cyber Risk||Supply Chain Visibility|
By combining these 12 drivers, leaders can gain valuable insight into the overall resilience of a country’s business environment.
Although COVID-19 is understandably a focus for many leaders, it’s vital that they remember that the devastating global situation does not stop other disasters from occurring. In-fact, COVID-19 may actually exacerbate existing risks – ranging from natural hazards to fires and cyber-attacks – as normal risk management functions and practices may be disrupted.
The fact that the FM Global Resilience Index provides insight into the exposure that countries face helps business leaders make decisions around how and where they establish or relocate facilities, expand supply chains and engage with new markets. These decisions need to be made whilst taking into account how they may affect resilience within an organisation.
After all, resilience is ultimately a product of the choices businesses make, including where they do business and how they invest in each location. Business leaders who make decisions which build resilience, particularly when backed-up by data-driven tools like the Resilience Index, are more likely to be successful in the long-term. Conversely, a lack of business resilience can have negative impact on market share, growth opportunities and investor confidence, impacting business value.
As the world begins the recovery from COVID-19, business leaders would be well served by taking stock of the vulnerabilities their organisations face, and begin or continue the process of building resilience. The FM Global Resilience Index can be a tool to support that process as resilience is one of the greatest assets that an organisation can have, and is critical to preserve a company’s value and growth opportunities throughout these difficult times.
More information about the Resilience Index can be found here – https://newsroom.fmglobal.co.uk/releases/high-ranking-countries-in-2020-fm-global-resilience-index-well-positioned-to-foster-post-pandemic-business-recovery