The 10 countries most vulnerable to supply chain disruption

13 June 2014

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14 June 2014 | Anna Scott

The Dominican Republic, Venezuela and Kyrgyzstan are the countries most susceptible to supply chain disruption, according to a new global index.

Norway, Switzerland and Canada topped the list of nations most resistant to such disruption – one of the leading causes of business volatility – on the 2014 FM Global Resilience Index.

The online tool ranks the business resilience of 130 countries, and is designed to help businesses better assess and manage supply chain risk.

The UK is ranked 20th in the index, but scores strongly (eighth worldwide) in its resilience to oil shock, for example sudden disruption in its supply or price. It also makes it into the top 20 worldwide in its control of corruption. But there is particular scope for improvement in the quality of its risk management against natural hazards and fire risk, and in political risk.

“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,” said Jonathan Hall, executive vice president of FM Global, the commercial property insurer that commissioned the Index.

The Index, which was developed by analytics firm Oxford Metrica, divided the US and China into three separate regions due to disparate levels of exposure to natural hazards. All three US regions rank in the top 25, and China’s regions rank 61, 66 and 75.

“We live in a volatile world and whether that’s because of what nature wrought or the human element, every nation is prone to some form of risk,” said Margareta Wahlström, UN special representative of the secretary-general for disaster risk reduction. “The question is why are some countries, whether developing nations or economic powerhouses, more resistant to supply chain disruption or better able to bounce back? It’s a puzzle that world leaders are perpetually trying to solve.”

The 10 least resilient countries (scored out of 100)

1. Dominican Republic: 0

2. Venezuela: 2.5

3. Kyrgyzstan: 6

4. Mauritania: 8.6

5. Bolivia: 11.6

6. Pakistan: 11.6

7. Nicaragua: 12

8. Guyana: 14

9: Jamaica: 14

10: Egypt: 14.2

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