FM Global has released the 2024 FM Global Resilience Index with additional ranking factors to reflect the rapidly changing nature of risks faced by global businesses. The index’s 18 factors determine its annual ranking of 130 countries and territories by the resilience of their business environments. FM Global has steadily refined the interactive index over the past decade to encompass evolving concepts of business risk and resilience. The new factors – including education, inflation, Internet usage, water stress, greenhouse gas emissions, and climate change exposure – reflect emerging risks to ensure the index continues to support strategic considerations for global businesses as they make critical decisions such as site selection, supply chain design, and loss prevention.
2024 FM Global Resilience Index rankings
In the 2024 FM Global Resilience Index, Denmark preserved its title as the world’s most resilient business environment. Rounding out the top 10 most resilient business environments are Luxembourg, Singapore, Switzerland, Germany, Sweden, Finland, Norway, Belgium and the central United States (the United States is divided into three separately ranked regions).
At the bottom of the list comes Chad, followed by Venezuela and Haiti.
Bill Bradshaw, Operations Senior Vice President, Operations Manager, London Operations, told Resilience Forward:
“It will come as no surprise that inflation and supply chain issues are pressing concerns for businesses in 2024, not only in the UK but globally. It’s notable that this year’s FM Global Resilience Index alludes to these trends in the UK with inflation dropping 7 ranks and logistics falling 14 ranks compared to 2023. This comes as the UK is ranked overall as the 15th most resilient territory included in the Index.
“In the face of such challenges, it’s crucial for businesses to adopt practical measures, conduct location-specific exposure assessments, and explore alternative strategies to mitigate risks effectively. Take logistics, for instance – having visibility across the entire supply chain, rather than focusing solely on individual facilities, is paramount. This approach enables businesses to quantify risks more accurately, especially amidst climate-related issues impacting various parts of the supply chain differently. By investing in the right proactive measures, leveraging data-driven insights, and fostering collaboration, businesses can navigate challenges effectively and thrive in an uncertain future.
“Some business leaders may be reluctant to make these investments as inflationary pressures are on the rise. However, it’s precisely during such times that investment in resilience is most valuable, as rising material and labour costs necessitate a meticulous re-evaluation of exposure. To ensure that businesses are investing in the most relevant risk mitigation projects and to ensure adequate insurance coverage is purchased, it’s important to have up-to-date and precise insured values. Collaborating with insurers and third-party appraisers is essential for businesses to verify and optimise information, bridging any gaps between nominal values and actual losses. This collaborative effort streamlines processes, minimises unexpected costs, and enhances the overall efficiency of risk management strategies.”
