You shouldn’t look only for a growing GDP or a favourable tax system when you select the seat for your next business. In an increasingly unstable world, resilience is a key discriminating factor to decide whether a country is fit for your investments, or not.
Political tensions are shaking even the world’s most powerful economies, climate change is threatening many regions around the globe, and cybercrime is putting privacy and digital assets at risk in lots of countries. In the quest for safe, trustworthy locations, some hints may come from the FM Global 2019 Resilience Index, a useful resource to support business executives in their vulnerability assessments.
The index ranks 130 countries by measuring and comparing their economic performance, natural hazard exposure, cybersecurity preparedness, governance models, and supply chain transparency. Norway stands out as the world’s most resilient country: with full, top 10 ratings in economic productivity, political stability, control of corruption and corporate governance, the country is also successfully mitigating climate change risks and working hard to decrease the historical reliance on fossil energy sources such as oil.
Second, this year is Denmark, thanks to impressive improvements in supply chain visibility, a strong government with low corruption, and low natural hazard exposure. Switzerland remains stable in the third position due to the quality of its infrastructure and governance model, low corruption level and high economic productivity. Interesting to know, the top three countries achieved high rankings in other global indexes, including the World Happiness Report 2019.
If political and regulatory issues particularly impact your business, do consider settling in Singapore, New Zealand, or Canada, the countries with the best corporate governance according to the Resilience Index. Here you should find the best environment in terms of auditing and accounting standards, conflict of interest regulation, and stakeholder transparency.
Since severe weather events and climate-related natural disasters are becoming stronger and more frequent, environmental resilience got more relevant in the latest Index edition, scrutinising countries along with their ability to monitor potentially critical events, define effective mitigation measures, have sound systems in place to manage crisis response and the aftermath. As exposures to natural hazards and related preparedness might not be consistent in a single country, the Index views, for instance, the United States as three different geographies, ranking the Central region as 9th, the Eastern region as 11th, and the Western region as 22nd.
For a business to grow and expand in uncertain times, it’s important to learn how much resilient a country is before making any decision about the organisation, its key partners or customers. Of course, we cannot pretend a government to predict the exact impact of a natural disaster, but we should know how good it is at handling climate, societal and political changes.