The UK ranked twentieth in the 2016 FM Global
Resilience Index conducted by international risk management and insurance firm FM Global
. The United Kingdom kept its rank from last year, as did France at nineteenth.
The Brexit referendum, which is scheduled for June 23, is likely to affect the country’s future ranking if the vote to leave the European Union wins. In case of an EU exit, resiliency index drivers affected by GDP, as well as the increased climate of political uncertainty, could pull the UK’s resiliency score downward.
The study measured supply chain resilience, which is vital for good business performance. Threats such as depressed oil prices, natural catastrophes, political risk, terrorism, control of corruption and quality of infrastructure are some of the factors that could lower a country’s score. If a country’s business environment is more isolated from these various risks, then it gets a higher score.
The global resilience index can help business decision-makers explore key supply chain risks that may affect how their organizations conduct business.
“By giving executives easy access to authoritative information on factors that could disrupt their supply chains, the FM Global
Resilience Index provides a simple way to analyze the potential for business risk and drive better decisions,” said Bret Ahnell, executive vice president at FM Global
. “Resilient supply chains give businesses a distinct advantage by protecting their operational integrity, revenue stream, market share and shareholder value. A fragile supply chain, on the other hand, often harms the company involved, sometimes for the long term.”
Top twenty ranked nations
7. the Central United States*
11. the Eastern United States*
12. Hong Kong
15. New Zealand
20. United Kingdom
* The US was divided into three regions due to varied exposure to natural hazards