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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
Fonacier said the BSP has started the construction of the Vulnerability Index for Cross Border Risks and is set to start the construction of theBanking Sector Resilience Index also within the year.
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