Risk conceptSwitzerland is the world’s most resilient country in terms of its ability to handle global risks including natural hazards, oil price volatility and terrorism, according to FM Global’s 2016 Resilience Index.

The central United States comes in at No. 7, with the U.S. East Coast at 11 and the Western United States at 21. The United States is split into three regions to reflect its “disparate natural hazards exposure,” according to the report.

The annual ranking evaluates the resilience of 130 countries and territories to supply-chain disruption. FM Global said the report is intended to help executives evaluate and manage unknown risks that might surface in countries in which they do business. FM Global is a Rhode Island-based mutual insurance company focused on property risk management.

Bret Ahnell, executive vice president at FM Global, said the resilience index helps executives make better choices in the face of potential risks.

“Resilient supply chains give businesses a distinct advantage by protecting their operational integrity, revenue stream, market share and shareholder value,” Ahnell said in prepared remarks. “A fragile supply chain, on the other hand, often harms the company involved, sometimes for the long term.”

RiskRankings assess economic, risk quality and supply-chain factors, with a score of 0 representing the lowest resilience and 100 reflecting the highest.

There are nine factors that help shape the rankings: GDP per capita, political risk, oil intensity, exposure to natural hazards, quality of natural hazard risk management and fire risk management, plus control of corruption, quality of infrastructure and local suppliers.

After Switzerland, Norway is ranked No. 2. The country was in first place but lost ground because of its drop in oil revenue as crude oil prices have plunged, according to FM Global. Ireland, Germany, Luxembourg, Netherlands, the central United States, Canada, Australia and Denmark follow in descending order.

Which country came in at last place, or No. 130? That would be Venezuela, which landed in the bottom spot for the second year in a row. Venezuela’s exposure to wind and earthquake, perceived problems with corruption, and bad infrastructure counted against it, FM Global said. The perception of poor local supplier quality also didn’t help.

The Dominican Republic, Kyrgyz Republic, Nicaragua, Mauritania, Ukraine, Egypt, Algeria, Jamaica and Honduras came in just above Venezuela, in ascending order.

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Source: FM Global