Australia moves up the FM Global Resilience Index

by Sophie Berrill
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FM Global Resilience Index

Australia has climbed from 20 to 19 in this year’s FM Global Resilience Index – an interactive tool that measures the resilience of nearly 130 countries’ business environments.

The commercial property insurer released the 2023 index this week, which ranks countries on 15 measures of economic, risk quality and supply chain resilience. The tool assists with site selection, supply chain design and market targeting amid critical business risks like climate change, economic volatility and geopolitical tensions. 

“When potential disruptions loom, a resilient company can avoid losses of revenue, market share and growth – losses that may have been unrecoverable,” says FM Global’s staff senior vice president, data analytics, Pentti Tofte.

FM Global Resilience Index top 10

FM Global’s data, both proprietary and aggregated from respected third parties, placed these 10 countries/territories at the top of this year’s Resilience Index:

  1. Denmark
  2. Singapore
  3. Luxembourg
  4. Germany
  5. Switzerland
  6. United States 3 (Central region)
  7. United states 1 (East)
  8. Sweden
  9. Finland
  10. Austria 

Australia came in at 19, moving up one spot from 2022, and making it the second highest overall for risk in the Asia Pacific region. Singapore took the top spot in the region.

Ranked bottom three were Ethiopia (128th), Venezuela (129th) and Haiti (130th). The biggest riser was the Dominican Republic, which rose from 99th to 95th based on a higher climate risk quality ranking in this year’s index. The biggest faller was Lebanon, which dropped from 101st to 106th, due partly to a lower ranking in healthcare spending.

Australia

Every country is unique when it comes to its risk profile and Australia is “no different”, says Andrew Stafford, senior vice president, operations manager at FM Global Australia.

“Australia as a whole ranks relatively well when it comes to our preparedness against climate risks but at the same time, we rank relatively poorly for climate risk exposure.”

Australia ranks 107th on the list for climate exposure – the percentage of a country’s area devoted to economic activities that is exposed to wind or flood. 

At the same time, Australia also ranks 15th on the climate risk quality measure – the quality and enforcement of a country’s building code with respect to wind-resistant design (80 percent), combined with the level of wind and flood risk improvement achieved, given the inherent wind and flood risks in a country (20 percent).

“We need to be aware of these risks and the potential damage they can cause. The FM Global Resilience Index can help business leaders understand local vulnerabilities, evaluate risk and take informed and actionable decisions so they can continue to operate even in the most challenging times.”

Use the 2023 FM Global Resilience Index to explore the data further.

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