Norway is the nation most resilient to supply chain disruption, and Venezuela the least, according to a global ranking.
The 2015 FM Global Resilience Index ranks the supply chain resilience of 130 countries and territories around the world, with the aim of helping executives prioritise where they should focus their risk management and investment.
Looking at economic factors, risk level and the quality of the supply chain itself, Norway scored the best in the ranking process, followed by Switzerland.
Norway’s high score for risk quality was due to its minimal natural hazard exposure, while Switzerland scored highly on economic and supply chain factors.
Qatar and Finland have moved into the top 10 in this year’s ranking. The index says this is mainly due to Qatar’s improvement relating to fire risk management. Finland’s high public and private investment in research and development has made it innovative, the ranking finds.
Taiwan has moved up the rankings the most, due to a substantial improvement in the country’s commitment to risk management.
Most countries ranking in the bottom 10 score poorly on economic factors. Venezuela, ranked the lowest due to an unstable macroeconomic environment, high inflation and public debt, and malfunctioning markets, FM Global said. The country also scored poorly in risk quality and supply chain factors.
Ukraine and Kazakhstan moved down the rankings the most, due to the deteriorating political risk situation in the former and a poorer commitment to regional natural hazard risk management in the latter.
The UK is the 20th most resilient country, unchanged from last year. Its ranking reflects its resistance to oil shocks, as its consumption of oil relative to GDP is comparatively low, FM Global said.
Business property insurer FM Global commissioned research analytics firm Oxford Metrica to develop the index.