Country risk: Difference between revisions
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''Risk management'' | |||
The risk that a country or an entity within a country will not be able to honour its financial obligations. | The risk that a country or an entity within a country will not be able to honour its financial obligations. | ||
Revision as of 11:23, 18 March 2017
Risk management
The risk that a country or an entity within a country will not be able to honour its financial obligations.
Exposures can arise from - for example:
- Interruption of business at the country level (political sovereign risk)
- Currencies being blocked from cross-border repatriation (transfer risk) and
- Central bank liquidity shortages preventing conversion (convertibility risk).
