FM Global Resilience Index: Ukraine, Thailand riskier locations for business

THE 2015 FM Global Resilience Index, released Tuesday, ranks 130 countries based on factors that affect supply chain resilience, and is a product of FM Global. Norway ranked first, while Venezuela ranked last. / COURTESY FM GLOBAL
THE 2015 FM Global Resilience Index, released Tuesday, ranks 130 countries based on factors that affect supply chain resilience, and is a product of FM Global. Norway ranked first, while Venezuela ranked last. / COURTESY FM GLOBAL

JOHNSTON – Both Ukraine and Thailand have become riskier locations for business, according to the 2015 FM Global Resilience Index, released Tuesday. The composite index ranks 130 countries based on factors that affect supply chain resilience, and is a product of FM Global.
Ukraine fell 31 places on the updated index, to 107th place, the largest year-to-year fall among countries. It is directly related to neighboring Russia’s military intervention in the country, along with a weakened infrastructure, according to the index assessment released by FM Global.
Thailand, a popular location for manufacturing, also fell precipitously on the index, to 82nd place. Its increased risk relates to poorer perceptions of the country’s infrastructure, including energy supplies, the quality of local suppliers and a decline in political stability. The problems compound the lingering effects of the devastating 2011 floods that affected the country, according to FM Global.
Faring better this year, moving up 52 places, was Taiwan. It soared in the annual rankings to 37th place overall, mainly due to improvements in the country’s commitment to risk management, in terms of natural hazards and fire risk, according to FM Global.
The interactive, online FM Global Resilience Index, first launched in 2014, allows managers and owners of companies to evaluate countries based on nine factors in three categories, including economics, risk quality and supply chain factors. The index uses proprietary and independent data to rank the supply chain resilience of 130 countries.
Norway, Switzerland and the Netherlands are ranked number one, two and three, respectively, based on the index, while Venezuela is last. The three regions of the United States, evaluated differently based on geographical risks, are all in the top 25.

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