Country risk


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Country risk

The general level of political, financial, and economic uncertainty in a country which impacts the value of the country's bonds and equities. See:Sovereign risk.

Country Risk

The risk that a foreign government will significantly alter its policies or other regulations so that it negatively impacts the business climate in that country or the returns on a particular industry, company, or project. Macro-country risk deals with policy changes that harm, say, exporters or foreign-owned businesses in general, while micro-country risk implies that a government will deliberately target a particular company or way of making a living. For example, the political climate of a country in which defense contractors operate may turn against one particular company because of its perceived excesses or against defense contractors in general. This may cause the government revoke contracts for one or more defense contractors See also: Reputational risk, political risk, sovereign risk, geographic risk.
References in periodicals archive ?
The models vary widely, but most rely on two distinct, but interrelated, levels of analysis: a macro assessment of overall country risk and a micro assessment of industry-segment or company-specific risk.
It is for this reason that managers often turn to country risk measures (or analysts) for advice and guidance.
Country risk analysts need a comprehensive knowledge of international and macro economics as well as an understanding of the history and sociopolitical institutions in the target country to make a complete risk assessment.
The company says that EIU Country Risk Service on Disc is ideal for marketing or investment planning, helping to set exposure guidelines and monitor constantly shifting risks to direct and portfolio investments, trade credits, and medium-and long-term loans.
t] represents specific proxies for country risk to be discussed below.
Best considers CIS well positioned at its current rating level, factors that may lead to negative rating actions include protracted adverse underwriting and overall performance, a significant deterioration in its risk-adjusted capitalization or a downgrade in the Panama country risk tier rating.
The Netherlands Country Risk Report by Business Monitor International (BMI) includes four major sections: Economic Outlook , Political Outlook , Operational Risk and Key Sector Outlook .
The upgrade of EAA CBB's deposit ratings to Aa1 mirrors Moody's announcement on 20 January 2015 on Ireland's local currency country risk ceiling.
Standard & Poor's Ratings Services has released further details regarding its insurance industry and country risk assessment (IICRA) for the United Arab Emirates (UAE) property/casualty (P/C) insurance sector
Unless the risk management process is well developed and a specific country risk function exists, sales may cherry pick only positive information to deliver to decision-makers.
In a new report, debt watcher Standard & Poor's (S&P) said it gave the local nonlife insurance industry, also referred to as property and casualty (P&C) insurance, a high-risk Insurance Industry and Country Risk Assessment (IICRA) score.

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