Singapore was recently declared as the world's safest country to do business in 2016. The Asian country edged out Switzerland, which consistently took the top spot in previous years.
The Pinkerton Risk Index Report, a new tool featured by the global risk management firm, Pinkerton, aims to help corporate clients assess the safety of doing business in every country in the world.
The new results showed that Singapore is the world's safest country to conduct business, while Switzerland took the No. 2 spot. The report was announced by the Ann Arbor unit of Securitas AB, based in Michigan, on July 12, 2016.
According to Pinkerton, its report renders results derived on data based on various factors such as economic problems, natural disasters, terrorism, social unrest and disease, among others.
Eighty-three different variables were reportedly accounted for to determine the world's safest country for investment, expansion, relocation and business travel.
Furthermore, the report can also aid insurers determine risk when planning to offer coverage in different places around the globe.
Jeff Spivey, president of Security Risk Management Inc. and co-founder of the Global Security Risk Management Alliance, stated that the world's safest country index can give companies with added visibility that will ultimately guide them in managing business risk.
As a result, firms who take advantage of the information can avoid risks and disruptions, thereby enjoying more profits and success.
Fortune noted that the Pinkerton Risk Index Report also featured the worst countries in the world for business. Chad was deemed the riskiest nation to conduct business in.
Zimbabwe is in second place, and Guinea is the third riskiest country. The United States garnered seventh place as the world's safest country to do business in 2016.
Jack Zahran, president of Pinkerton, mentioned that terrorist attacks and natural disasters are happening more frequently, which can potentially lead to widespread disruption to supply chains.
At present, corporations are operating on a global scale and processes are more interconnected, regardless of location. Zahran said that factors affecting businesses are no longer isolated to one or a few countries, because everything that happens around the world will also affect everyone directly and indirectly.
Singapore as the world's safest country has generally contained the various threats that tend to impede business.
Pinkerton is set to publish an overall risk index every year to show the world's safest country to do business, covering over 60 countries. Corporate clients can also get daily updates. More details on the world's safety country for business and expansion are expected soon.