FM Global has released its annual resilience index for 2017 defining business vulnerabilities in nearly 130 countries, in which India is ranked 60 for the ease of doing business. The report is based on the data from the World Economic Forum, the World Bank and the International Monetary Fund and the resilience ranking are derived on numerous factors, but economic, supply chain and risk quality are primarily considered in ranking the countries.
The index score is bound on a scale of 0 to 100, with 0 representing the lowest resilience and 100 being the highest resilience. India holds the 60th spot, with its growing information technology industry, emerges as a country with below-average inherent cyber risk. The overall resilience score is 41.7 and let’s check the breakdown of the score as well as the ranking, based on the below three factors.
This factor represents political and macroeconomic influences on resilience. Combining to form the factor, economic, are four drivers: productivity, political risk, oil intensity and urbanization rate.
- Score – 20.1/100
- Rank – 100/130
The risk quality factor measures the relative commercial and industrial property risk across countries. It comprises three drivers sourced from FM Global (exposure to natural hazard, natural hazard risk quality and fire risk quality) and a fourth driver that captures the inherent cyber risk of a country. This factor relates to attributes of the supply chain itself and comprises four drivers: control of corruption, quality of infrastructure, local supplier quality and supply chain visibility.
- Score – 46.1/100
- Rank – 54/130
This factor relates to attributes of the supply chain itself and comprises four drivers: control of corruption, quality of infrastructure, local supplier quality and supply chain visibility.
- Score – 49.4/100
- Rank – 54/130
Switzerland is ranked the safest country to do business, which has banking and finance as key industries, where infrastructure, economic productivity and political stability as some of the reasons on why it is currently the number one country to do business. It is followed by Luxembourg, Sweden, Germany and Belgium in top five positions. US and China has been divided into three categories each, ranked 9th, 10th and 18th while China is ranked 66th, 68th and 72nd. Hati is declared as the riskiest country to do business.