In 2015 businesses are looking to expand and to reach foreign markets more than ever before. But there are factors that they should always consider, including political stability, business environment, government corruption, and various other risks. Now the latest FM Global Resilience Index explores the current situation around the world, finding the best and worst places to do business in. So, which are the riskiest and most reliable countries for business in the world?
As for the most unstable country in the world, this year it is Venezuela, according to the new report by international insurance company FM Global. The high inflation in the South American country (it reached 68.5% in December!), combined with massive public debt and disrupted markets, make it the worst place for doing business right now. And the recession and poverty in Venezuela are further worsened by the soaring crime levels and unprecedented political corruption. The second and third most at-risk countries in the raking are Mauritania and Kyrgyzstan, where there are risks to economic productivity, businesses, and infrastructure and supply chain. The Dominican Republic and Nicaragua, rounding up the bottom five, are also vulnerable to oil crisis or natural disasters. But there are other places around the world, where business will need to think twice before eyeing. Here are the ten riskiest countries in the world for 2015:
- Kyrgyz Republic
- Dominican Republic
So, how was the ranking compiled? FM Global evaluates 130 countries around the world based on their strength in nine areas under three categories – risk quality, economic, and supply chain. The nine factors include GDP per capita, political risk and terrorism, oil intensity (or the risk of experiencing an oil shortage), quality of local supplies, quality of the infrastructure, control of corruption, the exposure to natural hazards (such as an earthquake or a flood), the quality of natural hazard risk management (or the country’s preparedness to deal with disasters), and the quality of fire risk management.
There aren’t huge surprises in the top 25 countries, although there are two newcomers in the top 10 this year – Qatar, ranked 7, and Finland, which comes at the ninth position. After Qatar, the United Arab Emirates is the second-most reliable country for business in the Middle East with a rank of 29. It is followed by Israel at No. 32 and Oman at No. 35. In the Europe, Ukraine ranks as the riskiest country as political and war risk intensify due to the continuing Russian conflict and the country’s infrastructure suffers the consequences – all transport, energy and telephony.
And which is the most reliable country for business? Norway retains its top position as the most resilient country in the world and is thus, the best for companies trying to avoid disruptions in their global supply chain operations.
The World’s Most Resilient Countries in 2015: