Resilience factors hold key to speed of recovery, report suggests

Amid easing lockdowns, the focus is now firmly on resuming business activity safely and securely, but also quickly. But just how quickly can it be done? And which countries are most likely to lead the charge? Insurer FM Global says its Resilience Index might have the answers to these questions.

Its annual index it says could provide an indication of which nations are most likely to achieve a more robust post-coronavirus recovery.

Ranking almost 130 countries and territories by 12 key drivers such as political risk, cyber risk, quality of infrastructure, its index generates an overall ranking for the resilience of a country’s business environment. As a general guide, the more resilient a country’s business environment, the better placed it will be to recover from COVID-19.

The index’s highest-ranked regions are Norway (top again), Switzerland, Denmark, Germany, Sweden, Finland, Luxembourg, Austria, Central United States and Eastern United States.

The bottom 10, in descending order, are Nicaragua, Nepal, Mali, Mozambique, Iran, Lebanon, Chad, Ethiopia, Venezuela and Haiti. For the purposes of this index, both the US and China comprise three regions as they have differing natural hazard exposures.

“When recovering after a crisis like COVID-19, resilience should be a key consideration for people, countries and businesses,” said Adriano Lanzilotto, operations vice president and client service manager for FM Global’s London operations. “The 2020 FM Global Resilience Index provides a strong indication of how a country’s business environment may fare during the recovery phase, and how quickly organisations in that country might be able to bounce back from the economic damage caused by COVID-19. This insight can be vital for making significant decisions as they establish or relocate facilities, expand supply chains and engage with new markets.”

“Unfortunately, a devastating global situation like COVID-19 does not stop other disasters from occurring,” said Lanzilotto. “With this in mind, it is critical that businesses are diligent and make use of data-driven risk-and-resilience analysis, coupled with appropriate engineering-led loss prevention, to preserve a company’s value and growth opportunities throughout these difficult times.”

In this year’s update to the Index, the UK ranked 13th overall. It continues to rankly highly in a variety of drivers of resilience, including natural hazard risk quality (ranked 12th), quality of infrastructure (11th) and corporate governance (13th).

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