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INSTITUTE OF PROFESSIONAL
EDUCATION & RESEARCH, BHOPAL

COUNTRY RISK:
Definition & Evaluation
International Financial
Management
Country Risk: Definition
• A collection of risks associated with
investing in a foreign country.
• Country risk varies from one country
to the next.
• Some countries have high enough
risk to discourage much foreign
investment.
Country Risks Evaluation
GDP Growth
Rate

External
Debt

Quantitative
Analysis
Total Export
Growth Rate

Inflation
Country Risks Evaluation
Political
Risk

Sovereign
Risk &
Transfer
Risk

Qualitative
Analysis
Economic
Risk

Exchange
Risk
Thank You For Your Patience!

SOURCES:
www.investopedia.com
A.M.BEST METHODOLOGY Report

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Country Risk Analysis:International Financial Management

Editor's Notes

  1. political risk, exchange rate risk, economic risk, sovereign risk and transfer risk, which is the risk of capital being locked up or frozen by government action.