World's most resilient business environments revealed

World’s most resilient business environments revealed | Insurance Business Australia

Insurance News

World’s most resilient business environments revealed

Insurer’s index examines vulnerabilities and ability to recover to aid decision-making

Insurance News

By
Terry Gangcuangco

FM Global has published its resilience index for 2024, with the latest iteration now featuring additional parameters to rank 130 nations and territories in terms of their business environments’ resilience.

According to the 2024 rankings, Denmark maintained its status as the most resilient business environment in the world, with Luxembourg, Singapore, Switzerland, Germany, Sweden, Finland, Norway, Belgium, and the central region of the United States (which is evaluated in three distinct segments) completing the top 10.

The index’s comprehensive approach combines quantitative data across 18 factors, sourced both from reputable external parties and FM Global’s extensive engineering records, based on evaluations conducted by its risk engineers at over 100,000 sites globally each year.

The new edition of the resilience index shows a doubling of the number of examined metrics compared to those used in the original resource that was launched in 2014. The inclusion of new risk factors, such as inflation and climate change exposure, aims to augment the utility of the interactive tool in making business decisions like site selection.

Chris Majka, FM Global’s staff vice president of data visualisation and reporting, emphasized the importance of the index in current times, saying: “Businesses need incisive information to thrive in today’s challenging and constantly changing environment.

FM Global highlighted that the efficacy of the tool is underscored by its correlation with real-world property loss data, demonstrating that countries within the top 50 of the index tend to recover from such losses over 30% more quickly compared to those ranked lower.