Luxembourg is in the top three in terms of global resilience, according to the 2018 FM Global Resilience Index published on 17 May 2018, which states that, “Luxembourg scores highly for its economic productivity, political stability, low corruption levels and low exposure to natural hazards.”

The grand duchy takes 2nd place, after Switzerland and before Sweden thanks also to it being, “…an attractive domicile for companies seeking a continental European base, following the United Kingdom’s vote to leave the European Union and the ensuing Brexit.”

The Global Resilience Index measures the risk of disruption to a company’s operations by analysing three elements that are key to business resilience--economic performance, risk quality and supply chain. It is carried out each year by property insurers FM Global (as commissioned by Pentland Analytics), which evaluates more than 100,00 locations in 130 counties around the world.

The index supplies business decision makers with information that allows them to see which locations are the most resilient to disrusptive events and, as such, priotise their risk management. The fact that Luxembourg ranks so high in business resilience, thanks to the elements such as economic performance, political stability and and low corruption levels mentioned above, makes it a very attractive, low risk environment. 

Other recent studies have seen the grandy duchy slide down competitiveness rankings and move slightly up in fiancial complexity. However, if Luxembourg was recently ranked 27th for financial complexity (see our article here), it is because it is a well-regulated jurisdiction and, if it has declined slightly in terms of competitiveness (see out article here), it is because other larger economies have moved up, not that Luxembourg has become less competitive. 

As we like to stress, it is important to view the headines of studies and rankings in context, even this one. That said, Luxembourg's home-grown benefits, as mentioned above, are facts that do not depend on studies or international rankings. As such we are happy to report its position in the top three.