Sovereign risk

1.

Sovereign risk indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.

Sovereign risk also includes concepts such as expropriation, war and civil unrest.

2.

Sovereign risk can also mean the risk of losses arising from default on sovereign debt.

See also

• Credit risk
• Default
• Geopolitical risk
• Sovereign
• Sovereign debt
• Sovereign debt crisis