Country Risk

Given the latest developments in AfCFTA as well as expansion requirements for companies, intent on managing their country risk in SA as well as in many American, European, and other global countries - the question of managing country risk is pertinent.

A great explanation - as well as additional research, can be found at: https://www.wallstreetmojo.com/country-risk/

The key risk factors include:

Sovereign Risk:

The risk of a country defaulting on its debt obligations - is also a key measurement of a nation's economic health.

Economic Risk:

Economic risk is referred to as the risk exposure of an investment made in a foreign country due to changes in the business conditions or adverse effects of?macroeconomic factors, ?like government policies or the collapse of the current government and significant swings in the exchange rates etc.

Political Risk:

The risk of losses due to the political situation in a country, where even a statement or unconsidered action by a politician can have economic repercussions - the risk of war and social unrest resorts under this aspect too.

Although a brief explanation - this includes the main factors of risk and is often insurable in the right circumstances - using products such as Political Risk Assurance (PRI) and Export Credit Assurance (ECA) to protect against perceived risks. This is available through many risk agencies including the World Bank, ECIC in South Africa, and many others globally - dependent on the risk to be managed.

Understanding risk coupled with opportunity issues - as well as transacting through knowledgeable in-country partners is thus important in your expansion plans - and why experienced consulting firms deliver the most value.

Chris Scholtz +2779 360 5903 or mail [email protected]