FM Global, one of the world's largest commercial and industrial property insurers, publishes an annual report analysing the resilience of countries and territories to supply chain disruptions: the FM Global Resilience Index. This index is particularly useful for companies operating at cross-border level, which often have to deal with a variety of risks.
The index is based on an analysis of 12 criteria, divided into three categories: economic, risk quality and supply chain. The criteria and categories are assessed on a scale of 0 (worst-performing territory) to 100 (best-performing territory).
Considerable progress for Luxembourg
The index ranks Luxembourg in second place out of the 130 countries and territories analysed. European countries dominate the top ten, with Switzerland topping the index (100.0), followed by Luxembourg (95.9) and Sweden (94.7). When it comes to our neighbours, Germany is ranked 5th, France 11th and Belgium 14th.
If we take a closer look at the three categories used to draw up the overall index, Luxembourg is ranked as follows:
- Economic – Luxembourg is in 2nd place at global level (85.0): productivity (78.4), political risk (97.9), oil intensity of the economy (64.5) and urbanization rate (71.0);
- Risk quality – Luxembourg is in 22nd place at global level (78.8): exposure to natural hazard (95.3), quality of natural hazard risk management (63.7), quality of fire risk management (68.7) and inherent cyber risk (49.4);
- Supply chain – Luxembourg is in 11th place at global level (87.6): control of corruption (95.2), quality of infrastructure (80.2), quality of local suppliers (75.1) and visibility of supply chain (90.9).
FM Global concludes that Luxembourg has a strong reputation for its stable network of service providers, its business-friendly regulations and its financial centre. Luxembourg is seen as an attractive alternative for companies seeking to relocate after Brexit.
Between 2013 and 2017, Luxembourg has gradually increased its score, rising from 8th to 2nd place.(Article written by the editorial team of the luxembourg.lu portal / Source: Press release from the Observatory for Competitiveness)