https://newsroom.fmglobal.com/cats/supply_chain.xmlSupply Chain - FM Global2024-03-21T15:18:16.794661+00:00python-feedgenFeed for "Supply Chain" categoryhttps://newsroom.fmglobal.com/releases/2024-fm-global-resilience-index-highlights-a-rapidly-evolving-risk-landscape2024 FM Global Resilience Index Highlights a Rapidly Evolving Risk Landscape2024-03-21T15:18:16.921518+00:00unspecified<![CDATA[<p><strong>JOHNSTON, R.I., March 21, 2024</strong> – Commercial property insurer <a href="http://www.fmglobal.com/">FM Global</a> today unveiled the 2024 FM Global Resilience Index with key updates to reflect the rapidly changing nature of risks faced by global businesses. The 2024 FM Global Resilience Index adds several new factors to its rankings, including education, inflation, internet usage, water stress, greenhouse gas emissions and climate change exposure.</p>
<p>The index’s 18 factors determine its annual ranking of 130 countries and territories by the resilience of their business environments. FM Global has steadily refined the interactive index over the past decade to encompass evolving concepts of business risk and resilience. The new factors reflect emerging risks to ensure the index continues to support strategic considerations for global businesses as they make critical decisions such as site selection, supply chain design and loss prevention.</p>
<p>“Businesses need incisive information to thrive in today’s challenging and constantly changing environment,” said Chris Majka, staff vice president, data visualization and reporting at FM Global. “With these new factors, the 2024 FM Global Resilience Index offers organizations important new insights as they make strategic decisions that could affect their operations and performance for years to come.”</p>
<p><strong>2024 FM Global</strong> <strong>Resilience Index rankings</strong></p>
<p>In the <a href="https://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex">2024 FM Global Resilience Index</a>, <strong>Denmark</strong> preserved its title as the world’s most resilient business environment. Rounding out the top 10 most resilient business environments are <strong>Luxembourg</strong>, <strong>Singapore</strong>, <strong>Switzerland</strong>, <strong>Germany</strong>, <strong>Sweden</strong>, <strong>Finland</strong>, <strong>Norway</strong>, <strong>Belgium</strong> and the <strong>central United States</strong> (the United States is divided into three separately ranked regions).</p>
<p>Each country’s overall ranking is based on quantitative data in 18 resilience factors. Factors are sourced from a combination of respected third parties and FM Global’s vast engineering database, which draws upon data from FM Global property risk engineers who visit and assess more than 100,000 locations annually around the world.</p>
<p>This year’s index, which incorporates proprietary AI-enhanced risk modeling, includes twice as many resilience factors as the inaugural index in 2014. Users can drill into any factor to explore specific concerns, discovering data such as greenhouse gas reduction in Belgium and India, water conservation in Australia and political risk in Russia and Ukraine. A revamped interface streamlines factor-by-factor analysis.</p>
<p>The 2024 FM Global Resilience Index has been validated by real-world property-loss data. Countries ranked in the top 50 of the FM Global Resilience Index recover over 30% faster from property losses, on average, than locations in other countries.</p>
<p><strong>New resilience factors</strong></p>
<p>The 18 equally weighted resilience factors include:</p>
<div class="textImage textImage-left" style="float: left; width: 360px; margin: 10px 10px 10px; font-size: 90%; font-style: italic;"><img align="left" alt="Resilience Index Table Final" author="" class="widget-image" custom_size="false" data-imgheight="241" data-imgwidth="360" file_id="65fb40823d6332568e371a10" height="241" src="https://s3.amazonaws.com/cms.ipressroom.com/240/files/20242/65fb40823d6332568e371a10_Resilience+Index+Table+Final/Resilience+Index+Table+Final_mid.png" title="" width="360" /></div>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p> </p>
<p>These factors collectively capture the resilience of a country’s business environment from a Macro perspective, such as political, economic and social risk, as well as from a Physical risk perspective. Physical factors affect a company’s property and tangible assets.</p>
<p>The index is part of FM Global’s effort of nearly 200 years to help protect clients’ businesses using world-class research, product testing and loss-prevention engineering.</p>
<p>Explore the 2024 FM Global Resilience Index:</p>
<ul>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17062" target="_blank" title="https://fmglobalpublic.hartehanks.com/assetdisplay?acc=11fm&itemcode=p17062">Executive Summary</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17095" target="_blank" title="https://fmglobalpublic.hartehanks.com/assetdisplay?acc=11fm&itemcode=p17095">Frequently Asked Questions</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=W00234" target="_blank" title="https://fmglobalpublic.hartehanks.com/assetdisplay?acc=11fm&itemcode=w00234">Methodology</a></li>
</ul>
<p> </p>
<p><strong>About FM Global</strong></p>
<p>Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its policyholder-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every four Fortune 500 companies. They work with FM Global to better understand the hazards that can impact their business continuity to make cost-effective risk management decisions, combining property loss prevention with insurance protection. </p>
<p align="center">###</p>
]]>The 2024 FM Global Resilience Index adds several new factors to its rankings, including education, inflation, internet usage, water stress, greenhouse gas emissions and climate change exposure.2024-03-21T14:00:00+00:00https://www.strategic-risk-europe.com/supply-chain/case-study-how-sandvik-put-its-supply-chain-to-the-ultimate-test/1447541.articleCase study: How Sandvik put its supply chain to the ultimate test2024-03-21T15:18:16.968003+00:00unspecified<![CDATA[]]>This case study analyzes how Swedish engineering firm Sandvik leveraged FM Global’s Business Impact Analysis (BIA) services to understand the value of its whole supply chain.2024-01-09T05:00:00+00:00https://www.ambest.com/video/MediaArchive.aspx?lid=1068187747001&vid=6330365362112FM Global’s Tofte: Denmark retains top spot in company’s Resilience Index2024-03-21T15:18:16.983177+00:00unspecified<![CDATA[]]>Pentti Tofte, staff senior vice president, data analytics, sits down with AM Best TV to discuss insights from the 2023 Resilience Index.2023-07-18T04:00:00+00:00https://newsroom.fmglobal.com/releases/new-2023-fm-global-resilience-index-fuels-business-continuity-and-sustainable-growthNew 2023 FM Global Resilience Index fuels business continuity and sustainable growth 2024-03-21T15:18:16.996611+00:00unspecified<![CDATA[<p><strong>JOHNSTON, R.I., USA, June 13, 2023</strong> – Commercial property insurer <a href="http://www.fmglobal.com/">FM Global</a> today revealed the <a href="https://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex">2023 FM Global Resilience Index</a>, an online, interactive tool that supports strategic decision-making for global businesses. The index ranks countries on 15 measures of economic, risk quality and supply chain resilience.</p>
<p>The FM Global Resilience Index is considered an essential tool for site selection, supply chain design and market targeting amid critical business risks like climate change, economic volatility and geopolitical tensions. Several global organizations have found the data-rich index so valuable they have integrated it into their site-selection/enterprise risk management software for strategic decision-making, demonstrating the power of the Resilience Index.</p>
<p>“Objective data should support most major business decisions, and in the Resilience Index we’ve aggregated salient data to help companies build resilience for decades to come,” said <a href="https://www.linkedin.com/in/pentti-tofte-556485/" target="_blank"><strong>Pentti Tofte</strong></a>, staff senior vice president, data analytics, FM Global. “When potential disruptions loom, a resilient company can mitigate losses of revenue, market share and growth – losses that may have been unrecoverable.”</p>
<p><strong>Data drives decisions</strong></p>
<p>FM Global’s data, both proprietary and aggregated from respected third parties, places these 10 countries/territories atop this year’s Resilience Index:</p>
<ol>
<li>Denmark</li>
<li>Singapore</li>
<li>Luxembourg</li>
<li>Germany</li>
<li>Switzerland</li>
<li>United States Region 3 (Central)</li>
<li>United States Region 1 (East)</li>
<li>Sweden</li>
<li>Finland</li>
<li>Austria</li>
</ol>
<p>The bottom three are:</p>
<ol>
<li value="128">Ethiopia</li>
<li value="129">Venezuela</li>
<li value="130">Haiti</li>
</ol>
<p>The biggest riser was the Dominican Republic, which rose from 99<sup>th</sup> to 95<sup>th</sup> based on a higher climate risk quality ranking in this year’s index. The biggest faller was Lebanon, which dropped from 101<sup>st</sup> to 106<sup>th</sup>, due in part to a lower ranking in health care spending.</p>
<p><strong>Facts support good decisions</strong></p>
<p>The FM Global Resilience Index provides relevant data around some of the most pivotal topics that companies face today.</p>
<p><strong>Climate change</strong> is one of them. The index uses facts about each country’s <em>climate risk exposure</em> and <em>climate risk quality</em> to help companies prosper. </p>
<p>The <strong>global economy</strong> is another concern, and more<em> productive</em> countries (those with higher GDP per capita) generally have more resilient business environments. <em>Health expenditure </em>per capita<em>, energy intensity</em> and high <em>urbanization rates</em> also affect resilience. Data on all of these economic drivers is captured in the index to keep companies growing strong.</p>
<p>As<strong> geopolitics</strong> continue to shift, companies can consult the index’s <em>political risk</em> rankings to enhance stability for future growth.</p>
<p><strong>Rankings</strong></p>
<p>FM Global has chosen to make the <a href="https://www.fmglobal.com/research-and-resources/tools-and-resources/resilienceindex">Resilience Index</a> freely accessible to any individual or company seeking to improve resilience, reduce risk and achieve their environmental, social and governance (ESG) goals. It’s part of an exclusive <a href="https://www.fmglobal.com/products-and-services/products/climate">suite of products</a> designed to support FM Global clients in a changing world. The index consistently attracts thousands of global business leaders representing numerous sectors, including chemicals, education, forest products, governments, healthcare, mining, molten materials, pharma/biotech, power generation and semiconductors.</p>
<p><strong>Explore the 2023 FM Global Resilience Index:</strong></p>
<ul>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17062">Executive Summary</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17095">Frequently Asked Questions</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=W00234">Methodology</a></li>
</ul>
<p><strong>About FM Global</strong></p>
<p>Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its policyholder-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every four Fortune 500 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.</p>
<p align="center">###</p>
]]>The definitive ranking of countries’ business environments helps companies select new sites, create stronger supply chains, and target new markets.2023-06-13T14:00:00+00:00https://www.fssustainability.com.au/australia-vulnerable-but-resilient-on-climate-risk-fm-globalAustralia vulnerable but resilient on climate risk: FM Global2024-03-21T15:18:17.031625+00:00unspecified<![CDATA[]]>Although Australia ranks 107th for climate risk exposure, according to a new ranking from FM Global, the country sits in 20th place for its ability to address those risks.2022-06-23T04:00:00+00:00https://www.forbes.com/sites/louisgritzo/2022/06/13/calculating-the-not-so-hidden-cost-of-living-on-the-coastCalculating the (not so) hidden cost of living on the coast2024-03-21T15:18:17.043068+00:00unspecified<![CDATA[]]>Dr. Louis Gritzo, head of scientific research at FM Global, discusses why the trend of people flocking to coastlines to live and to work poses a challenge to financial resilience around the globe.2022-06-13T04:00:00+00:00https://newsroom.fmglobal.comnews-20220620FM Global Resilience Index shines spotlight on ESG2024-03-21T15:18:17.069042+00:00unspecified<![CDATA[]]>The index now includes country filters that present specific index data related directly to businesses’ climate risk and Environmental, Social and Governance (ESG) interests, as organizations strive to become more transparent in their commitments and values.2022-06-13T04:00:00+00:00https://newsroom.fmglobal.com/releases/just-updated-2022-fm-global-resilience-index-enhanced-to-support-business-executives-seeking-long-term-sustainable-outcomesJust updated: 2022 FM Global Resilience Index enhanced to support business executives seeking long-term sustainable outcomes2024-03-21T15:18:17.100309+00:00unspecified<![CDATA[<div class="textImage textImage-right" style="float: right; width: 360px; margin: 10px 10px 10px; font-size: 90%; font-style: italic;"><img align="right" alt="Global-Resilience-1200x62732" author="" class="widget-image" custom_size="false" data-imgheight="188" data-imgwidth="360" file_id="629e0986b3aed322c28367fb" height="188" src="https://s3.amazonaws.com/cms.ipressroom.com/240/files/20225/629e0986b3aed322c28367fb_Global-Resilience-1200x62732/Global-Resilience-1200x62732_mid.jpg" title="" width="360" /></div>
<p>For companies seeking to grow and expand around the world responsibly and serve new customers and communities, the online <strong>2022 FM Global Resilience Index</strong> [<a href="http://www.fmglobal.com/resilienceindex" target="_blank">fmglobal.com/resilienceindex</a>], has just been released and enhanced. It now includes 15 economic, risk quality, and supply chain measures that offer executives insights into the vulnerabilities of a country’s business environment and, conversely, its resilience.</p>
<p>The interactive web tool enables decision makers to find, slice, dice, and compare objective data about 130 countries and territories to inform strategic decisions as they site new facilities, evaluate their supply chains, assess their business risk around the world, and perform due diligence for mergers and acquisitions.</p>
<p><strong>C</strong><strong>limate risk and ESG-related enhancements</strong></p>
<p>Two new index measures for 2022, <em>climate risk exposure</em> and <em>climate risk quality</em>, help businesses intensify their focus on emerging environmental perils. The former measure reflects such threats as severe floods and wind storms, while the latter reflects building codes, code enforcement, and facilities improvements.</p>
<p>Notably, the Republic of Korea’s <em>climate risk quality</em> rose in rank for this measure since last year, climbing 36 places, from 89 to 53, as the country demonstrated its commitment by releasing national flood maps in 2021. The Resilience Index also indicates countries which are relatively better able than others to address climate-related risks such as the United Kingdom. While ranked 111th for <em>climate risk exposure</em>, the U.K. sits in 17th place for <em>climate risk quality</em> this year.</p>
<p>Conversely, as businesses struggle to manage supply chain strains, this year’s index reveals manufacturing nations that rank low for both <em>climate risk exposure</em> and <em>climate risk quality</em> including China region 1 (East) and region 2 (Southwest and some coastal locations), India and Vietnam.</p>
<p>With stakeholder demands on companies increasing, the 2022 Resilience Index now includes country filters that present specific index data related directly to businesses’ climate risk and Environmental, Social and Governance (ESG) interests, as organizations strive to become more transparent in their commitments and values. The two filters enable index users to focus exclusively on the climate risk- and ESG-related measures within the Resilience Index to better understand inherent country risks and identify opportunities through these lenses.</p>
<p>Additionally, in recognition of the impact of pandemic risk, the 2022 Resilience Index includes two new measures: <em>health expenditure and supply chain timeliness</em>. Also, due to the availability of better-quality data, the Resilience Index now contains improved measures for <em>cyber risk</em> and <em>energy intensity</em>, a more comprehensive measure for 2022, broadened from fossil fuels to now include renewable and clean energy sources.</p>
<p>“Building resilience to achieve long-term sustainable outcomes is critical to business success, whether adjusting to war, navigating a pandemic, dealing with the threat of a changing climate, or meeting ESG demands,” said <a href="https://www.linkedin.com/in/pentti-tofte-556485/" target="_blank"><strong>Pentti Tofte</strong></a>, staff senior vice president, data analytics, FM Global. “The 2022 FM Global Resilience Index is designed to support senior executives with preparing for—and adapting to—a dynamic risk landscape and with building business resilience responsibly.”</p>
<p><strong>Helping businesses build resilience against disruptive events</strong></p>
<p>The Resilience Index sees nearly 20,000 visits per year from global business leaders from numerous sectors including chemicals, education, forest products, healthcare, mining, molten materials, pharma/biotech, power generation, governments, and semiconductors. A number of global companies have integrated the index into their executive dashboards as well.</p>
<p><strong>Additional Resilience Index Resources</strong></p>
<ul>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17062" target="_blank">Executive Summary</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=P17095" target="_blank">Frequently Asked Questions</a></li>
<li><a href="https://fmglobalpublic.hartehanks.com/AssetDisplay?acc=11FM&itemCode=W00234" target="_blank">Methodology</a></li>
</ul>
<p><strong>About FM Global</strong><br />
Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three Fortune 500 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.</p>
<p style="text-align: center;">###</p>
]]>For companies seeking to grow and expand around the world responsibly and serve new customers and communities, the online 2022 FM Global Resilience Index [fmglobal.com/resilienceindex], has just been released and enhanced.2022-06-07T12:00:00+00:00https://www.usnews.com/news/best-countries/articles/2022-06-07/denmark-other-european-countries-lead-latest-survey-of-nations-resilienceEuropean countries lead latest survey of nations’ resilience2024-03-21T15:18:17.134875+00:00unspecified<![CDATA[]]>The annual Resilience Index, produced by FM Global, looked at how well nearly 130 countries deal with climate, health, economic and political risk.2022-06-07T04:00:00+00:00https://www.commercialriskonline.com/asia-manufacturing-hubs-vulnerable-to-supply-chain-and-climate-risks/Asia manufacturing hubs vulnerable to supply chain and climate risks2024-03-21T15:18:17.150606+00:00unspecified<![CDATA[]]>With the launch of the online 2022 FM Global Resilience Index, Commercial Risk Europe points out the vulnerabilities of Asian manufacturing hubs to climate and supply chain risks.2022-06-07T04:00:00+00:00https://www.strategic-risk-europe.com/home/airmic-2022-lessons-in-supply-chain-disruption/1441375.articleLessons in supply chain disruption2024-03-21T15:18:17.163836+00:00unspecified<![CDATA[]]>FM Global's Adrian Oxley highlights various issues that can follow supply chain disruption including how property and facility losses can quickly cause widespread business and industry disruption if not managed carefully.2022-06-07T04:00:00+00:00https://www.insurancebusinessmag.com/au/news/natural-catastrophe/insurer-on-whether-flood-losses-can-be-prevented-398556.aspx Insurer on whether flood losses can be prevented2024-03-21T15:18:17.177894+00:00unspecified<![CDATA[]]>Supply chains are being pushed to their limits and when disaster strikes, it can make a bad situation worse says FM Global experts Michael Hunneyball and Stuart Selden.2022-03-15T04:00:00+00:00https://newsroom.fmglobal.com/releases/fm-global-to-address-climate-risk-and-preventing-its-physical-impact-on-supply-chains-at-the-economists-climate-risk-north-america-summitFM Global to address climate risk and preventing its physical impact on supply chains at Economist’s Climate Risk North America Summit2024-03-21T15:18:17.191189+00:00unspecified<![CDATA[<p>Attendees at the Feb. 17 session will learn about:</p>
<ul>
<li>
<p>physical risks in complex supply chains</p>
</li>
<li>
<p>loss prevention in climate-sensitive economic sectors</p>
</li>
<li>
<p>best practices for reporting on risk management implementation</p>
</li>
</ul>
<div class="textImage textImage-left" style="float: left; width: 150px; margin: 10px 10px 10px; font-size: 90%; font-style: italic;"><img align="left" alt="" author="" class="widget-image" custom_size="false" data-imgheight="150" data-imgwidth="150" file_id="56e778736022746a61c8725c" height="150" src="https://s3.amazonaws.com/cms.ipressroom.com/240/files/20162/56e778736022746a61c8725c_Gritzo_Lou+2013/Gritzo_Lou+2013_s.jpg" title="" width="150" /></div>
<p><a href="https://newsroom.fmglobal.com/experts/louis-a-gritzo-ph-d" target="_blank">Dr. Louis Gritzo</a>, vice president and manager of research at commercial property insurer FM Global, will be one of the panelists at the upcoming <em>Economist</em> Climate Risk North America 2022 summit. In a session titled, “Addressing physical risks in complex supply chains,” which will <a href="https://eventsregistration.economist.com/l7DAkP?rt=MDhUuJSv7UunM_D28Ig-yw" target="_blank">be streamed to virtual attendees</a> on <strong>Thursday, Feb. 17, 3–3:45 p.m. EST</strong>, Dr. Gritzo will provide valuable insights about the pandemic’s effect on climate risk management in complex supply chains, strategies for risk management implementation reporting, and ways to maximize opportunities in climate-sensitive economic sectors.</p>
<p>The panel discussion, moderated by Kathy Baughman McLeod, director, Adrienne Arsht-Rockefeller Foundation Resilience Center, will also include three leaders from the supply chain and sustainability fields: Chris Ettery, director, corporate sustainability, Dell Technologies; Kirstie McIntyre, sustainability director, global supply chain and procurement, Diageo; and Linzell Harris, senior vice president, global supply chain and strategy, AstraZeneca.</p>
<p><a href="https://events.economist.com/climate-risk-americas/" target="_blank">Read more about the session and event</a>.</p>
<p><strong>About Economist Climate Risk North America 2022</strong><br />
<em>The Economist’s</em> Climate Risk North America 2022 summit will virtually bring together sustainability and finance executives, investors, regulators, policymakers and scientists to discuss the effect of climate-related risks on businesses as well as strategies for responding.</p>
<p><strong>About FM Global</strong><br />
Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three Fortune 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.</p>
<p style="text-align: center;">###</p>
]]>Attendees at the Feb. 17 session will learn about physical risks in complex supply chains, loss prevention in climate-sensitive economic sectors and best practices for reporting on risk management implementation.2022-02-07T16:57:00+00:00https://spendmatters.com/2022/01/24/fm-global-resilience-is-really-becoming-a-requirement-as-supply-chain-issues-persist-in-2022/FM Global: ‘Resilience is really becoming a requirement’ as supply chain issues persist in 20222024-03-21T15:18:17.234327+00:00unspecified<![CDATA[]]>The latest insights released by mutual insurer FM Global emphasize six threats to companies' supply chain resilience and how businesses can go about addressing them.2022-01-24T12:32:00+00:00https://riskandinsurance.com/6-supply-chain-setbacks-and-their-domino-effect-on-business-resilience/Six supply chain setbacks and their domino effect on business resilience2024-03-21T15:18:17.247472+00:00unspecified<![CDATA[]]>What is creating issues within the global supply chain and business resilience? FM Global's Doug Backes, vice president of claims, shares some root causes.2021-12-09T05:00:00+00:00https://newsroom.fmglobal.com/releases/commerical-property-insurer-fm-global-spotlights-six-key-facets-of-current-global-supply-chain-strainCommercial property insurer FM Global spotlights six key facets of current global supply chain strain2024-03-21T15:18:17.259585+00:00unspecified<![CDATA[<p>JOHNSTON, R.I., USA—Six months after the <a href="https://newsroom.fmglobal.com/releases/denmark-bumps-norway-from-top-spot-in-the-2021-fm-global-resilience-index" target="_blank">release of the 2021 FM Global Resilience Index</a>, the world’s supply chains are being tested like never before. Supply chain conditions traditionally affect countries’ rankings within the annual index.</p>
<p>As one of the world’s largest commercial property insurers and a supply chain resilience expert, <a href="http://www.fmglobal.com/" target="_blank">FM Global</a> today identified six facets of the current supply chain crisis that exemplify threats to business resilience.<a href="#_ftn1" name="_ftnref1" title="">[1]</a></p>
<p>1. <strong>COVID-19</strong> – The pandemic has disrupted demand (as consumers have hunkered down) and product supply (as factories have suspended production), setting up a bullwhip effect of supply and demand mismatches.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway: Although the pandemic triggered supply chain problems, other contributors are the proliferation of chip-based products and intensification of demand, which aren’t going away.</strong></p>
<p>2. <strong>Cyber risk</strong> – A May cyber attack on the Colonial Pipeline disrupted U.S. fuel supply for less than a week but revealed the soft underbelly of modern supply chains – that is, a tight integration with digital systems that will intensify with the arrival of 5G broadband cellular networks.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway: Cybercrime has become big business and a geopolitical flashpoint, making cybersecurity an integral part of business strategy. Cyber security requires vigilance, intelligence, employee training, advanced technology and international diplomacy.</strong></p>
<p>3. <strong>Port backlog</strong> – Goldman Sachs has estimated that US$24 billion of goods have been lingering outside of California ports alone as ocean-shipped goods have accumulated faster than workers can move them along.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway:</strong> <strong>Unfortunately, there are no assurances that backlogs and elevated shipping costs won’t linger through the middle of next year or longer.</strong></p>
<p>4. <strong>Truck driver shortage </strong>– Many countries of the world lack enough truck drivers to move the goods that are backlogged in ports and elsewhere. At last reckoning, 20% of Eurasia’s road transport driving jobs were unfilled, according to the International Road Transport Union, and an estimated 80,000 truck driving jobs were unfilled in the U.S., according to the American Trucking Associations.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway: This shortage will strengthen the case for autonomous-vehicle development and for lowering the interstate truck-driving age.</strong></p>
<p>5. <strong>Deadly floods </strong>– Deluges in China and Europe have destroyed communities, severed railway links, and disrupted manufacturing.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway: Although no single weather event can be conclusively attributed to a changing climate, flooding is a well-documented effect of warming temperatures and a growing risk to business.</strong></p>
<p><strong>6. Chip shortage </strong>– The pandemic closed factories and triggered a surge in technology demand, tension that was exacerbated by severe weather, shipping backlogs, and stockpiling. The shortage has affected auto, gaming, smartphone, and medical device manufacturing, among many other industries, and is expected to extend as far as 2023 or beyond.</p>
<p style="margin-left: 40px;"><strong>FM Global takeaway: This shortage looks familiar. Chip booms and busts have been common throughout the technology’s history and are likely to recur in the future.</strong></p>
<p>“These and other factors contribute to the global supply chain strain, and each business should evaluate the potential implications on their company,” said FM Global’s Doug Backes, vice president and manager, staff claims. “The <a href="http://www.fmglobal.com/resilienceindex" target="_blank">2021 FM Global Resilience Index</a> is designed to assist organizations in optimizing their supply chains in good times and in bad, by providing valuable data on the relative resilience of countries’ and territories’ business environments.”</p>
<p><strong>About FM Global</strong><br />
Established nearly two centuries ago, FM Global is a mutual insurance company whose capital, scientific research capability and engineering expertise are solely dedicated to property risk management and the resilience of its client-owners. These owners, who share the belief that the majority of property loss is preventable, represent many of the world’s largest organizations, including one of every three Fortune 1000 companies. They work with FM Global to better understand the hazards that can impact their business continuity in order to make cost-effective risk management decisions, combining property loss prevention with insurance protection.</p>
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<p><a href="#_ftnref1" name="_ftn1" title="">[1]</a> These six facets of the current supply chain crisis are separate from the traditional supply-chain resilience drivers within the FM Global Resilience Index, which are control of corruption, quality of infrastructure, corporate governance, and supply chain visibility.</p>
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]]>Six months after the release of the 2021 FM Global Resilience Index, which ranks the resilience of nearly 130 countries, nations’ supply chains and businesses are being tested like never before.2021-11-18T14:00:00+00:00https://www.businesstimes.com.sg/views-from-the-top/girding-up-for-adaptive-livingGirding up for adaptive living2024-03-21T15:18:17.296618+00:00unspecified<![CDATA[]]>FM Global shares insights into some of the most important changes cities should make to be resilient to future shocks.2021-06-28T04:00:00+00:00https://spendmatters.com/2021/06/22/fm-globals-2021-resilience-index-shows-shift-in-top-country-hong-kong-growing-less-resilient-ukraine-improving/FM Global’s 2021 Resilience Index shows shift in top country, Hong Kong growing less resilient, Ukraine improving2024-03-21T15:18:17.310291+00:00unspecified<![CDATA[]]>FM Global's newly released 2021 Resilience Index is a tool meant for senior executives to assess the resilience of 130 countries around the world to make decisions about risk factors and global supply chain planning.2021-06-22T04:00:00+00:00https://www.propertycasualty360.com/2021/06/22/ranking-the-most-resilient-nations-territories-in-2021/Ranking the most resilient nations and territories in 20212024-03-21T15:18:17.325555+00:00unspecified<![CDATA[]]>The global business community came to grasps with the true value of resiliency during the past year as supply chains were rocked, political tensions ratcheted up and climate worries rose. FM Global’s 2021 Resilience Index brings to light which countries have fared better than others.2021-06-22T04:00:00+00:00https://www.supplychaindive.com/news/billion-dollar-weather-events-climate-supply-chains-2020/600515/4 types of billion-dollar weather events tested supply chains in 20202024-03-21T15:18:17.338516+00:00unspecified<![CDATA[]]>While a record year for natural disasters magnified disruptions to shippers, carriers and everyone in between, the damage to supply chains from severe weather doesn't have to be inevitable, says FM Global.2021-06-01T04:00:00+00:00