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In a recently released 2016 FM Global Resilience Index, which ranks the resilience of 130 countries to supply chain disruption, Pakistan ranked 117.
Why is resilience important in business, especially in developing countries like Pakistan? Resilience is the ability to withstand disruption and rebound quickly when necessary. It is especially vital for global companies doing business in a fluid, borderless manner, facing unknown risks in developing markets.
Before exploring new business avenues, companies and business owners consider various factors. The index identifies nine key drivers of resilience including: political risk, the quality of infrastructure, exposure to natural hazard, and commitment to risk management. These drivers are aggregated into three broad factors – economic, risk quality and supply chain – which, in turn, combine to form the index. The quality of supply chains depends on the quality of the local suppliers, the infrastructure quality and how well a country controls them, in addition to managing corruption. Read More...