Cross-border risk


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Cross-border risk

Describes the volatility of returns on international investments caused by events associated with a particular country as opposed to events associated solely with a particular economic or financial agent.
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 ?
Every company doing business abroad needs to implement a meaningful approach to cross-border risk management.
It's using judgment--business judgment, political judgment--and it's a risk that you can choose to mitigate through cross-border risk insurance, hedging, making currencies deliverable outside the country or in a variety of other ways.
One of Leader's specialties is applying special cross-border risk mitigation techniques to obtain funding at rates that benefit U.S.
"The outlook change reflects the firm's return to profitability, the successful implementation of a new business model which focuses on the retail and middle market, substantially reduced cross-border risk, and improving expense base structure to deal with risk of lower domestic market volumes," Moody's said.
Assessing cross-border risk and recovery capabilities within one's own organization and across supply chains is a highly complex process requiring the specialized skills of accredited and experienced practitioners.
Daniel Wagner is CEO of Country Risk Solutions, a cross-border risk advisory firm, and author of the book Managing Country Risk.
It also aims to activate cross-border risk management plans.
In this way, the warranties can limit cross-border risk while letting entities able to assume the risk execute payments faster.
They recommended further research especially in the areas of cross-border risk, crisis management and unequal treatment between customers.
The President has also tasked to enhance the interaction and information exchange on cross-border risks and threats with other countries and the World Health Organization.