Diversifying supply chains and expanding operations: How FM’s Resilience Index helps mining companies mitigate risk

Canadian mining companies face growing risks of supply chain disruption due to climate change, geopolitical tensions, and global trade conflicts. These challenges can cause production delays and higher costs. FM has heard from its mining clients that rising costs for materials, operations, and rebuilds are major concerns. Many have also expressed frustration with longer lead times caused by global disruptions, and difficulty making long-term decisions in the face of unpredictable conditions. The interconnected nature of global supply chains amplifies these issues, where disruptions in one region can ripple across operations, delaying production and driving up costs.

To mitigate these risks, mining companies need to diversify their supply chains and reduce reliance on high-risk areas. However, diversification—and expansion into new markets—introduces additional challenges. Unfamiliar regions bring unknown risks, making it difficult for mining companies to navigate new markets. Assessing factors like political stability and climate vulnerabilities across multiple locations can be overwhelming, adding complexity to decision-making.

This is where the FM Resilience Index can play a key role for mining companies. The index provides companies with a systemic approach to evaluating country-level risks and opportunities. It ranks 130 countries and territories based on the resilience of their business environments, using 18 equally weighted factors across macroeconomic risks (e.g., inflation, political stability) and physical risks (e.g., climate exposure, fire risk). By combining FM data with third-party sources like the World Bank and IMF, the index can help mining businesses see hidden risks and seize overlooked opportunities. For mining operators, the FM Resilience Index simplifies global risk assessment, enabling them to identify the most resilient sourcing locations.  

For mining companies expanding operations, the index provides insights into the risks and opportunities associated with different regions. By analyzing logistics, energy reliability, and natural hazard exposure, the index helps operators assess whether a potential location can support sustainable growth. With its comprehensive data and actionable intelligence, the index empowers mining companies to confidently enter new markets while minimizing exposure to unforeseen risks. The analytical power of the index is validated by real-world data: Locations in countries ranked in the top 50 of the index recover 30% faster from property losses, than locations in other countries. The Resilience Index is free and publicly available on FM’s website.

FM also offers resources like customized flood maps and wildfire assessments, as well as a Natural Hazard Toolkit. FM also offers on-site expertise, with engineers conducting detailed risk assessments to help mining companies identify vulnerabilities and enhance operational resilience. By combining cutting-edge tools with expert guidance, FM empowers mining companies to mitigate risk and capitalize on opportunities in today’s volatile environment.

As a global property insurance company, FM specializes in underwriting customized insurance programs that address the risks associated with complex supply chains, multinational operations, and natural hazards. By integrating risk management tools like the Resilience Index combined with a comprehensive mix of risk mitigation strategies delivered through engineering solutions and robust insurance products, FM ensures that its clients have insights into known and emerging threats.

Mining companies must adopt proactive strategies to safeguard their operations and ensure long-term success. Diversifying supply chains and expanding operations both require informed decision-making supported by reliable data. The FM Resilience Index provides unparalleled insights into global risks, empowering mining operators to navigate uncertainty with confidence. Coupled with FM’s Natural Hazard Toolkit, engineering expertise, and ability to structure tailored insurance programs, FM equips companies with the tools and protection they need to thrive in an unpredictable landscape.

Don’t let uncertainty derail your operations. Visit FM’s website to access the FM Resilience Index and other helpful tools and learn how FM can help you build a more resilient mining operation and access helpful tools.