# Country risk

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Language: en

Published: 2026-10-25T20:34:34.862Z

Updated: 2026-10-25T20:34:34.862Z

Country risk refers to the risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribu

## Key facts

## Overview

Country risk refers to the risk of investing or lending in a country, arising from possible changes in the business environment that may adversely affect operating profits or the value of assets in the country. For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks. This term is also sometimes referred to as political risk; however, country risk is a more general term that generally refers only to risks influencing all companies operating within or involved with a particular country. Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries' comparative risk exposure. Credit rating agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing on political analysis. However, there is no consensus on methodology in assessing credit and political risks.

## Ratings

Higher scores in this table indicate less risky countries.

Ratings are further broken down into components including political risk and economic risk. Euromoney's quarterly country risk index “Country Risk Survey” monitors the political and economic stability of 185 sovereign countries. Results focus foremost on economics, specifically sovereign default risk and/or payment default risk for exporters (a.k.a. “trade credit” risk).

## Partial list of credit risk rating agencies

Fitch Ratings (U.S.) Moody's (U.S.) Standard & Poor's (U.S.) CTRISKS (Greater China)

## Partial list of political risk analysis organizations

Euromoney Country Risk, ECR IHS Country Risk BMI Research Country Risk Solutions Economist Intelligence Unit Eurasia Group Maplecroft Oxford Analytica The PRS Group, Inc.

## See also

Credit rating agency National average salary Offshoring Workforce productivity Emerging Markets Index (MSCI) (for the equity risk premium of a country stock market) Emerging Market Bond Index (EMBI) (for the debt risk premium of a country bond market) List of countries by natural disaster risk

## Downloadable country analysis and reports

Coface Economic Studies Credendo Country Risk Ratings The Benche Analysis & Reports Euler Hermes Country Reports Maplecroft The PRS Group, Inc.

## Sources

- Country risk · Wikipedia: https://en.wikipedia.org/?curid=2619630

Source: Wikipedia contributors — https://en.wikipedia.org/?curid=2619630&oldid=1368647420

Licence: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/

Adaptation notice: Reformatted for XPay; the source may be abridged, restructured or translated. Consult the cited revision for the original.