Country Risk

Country risk refers to the potential for losses or negative impacts on investments and businesses due to political, economic, or social conditions in a specific country. This includes factors like political instability, changes in government, economic downturns, or natural disasters. Investors and businesses assess country risk to understand the likelihood that events in a country could affect their operations or investments negatively. Higher country risk often leads to higher costs and lower returns, as it can influence currency stability, market access, and overall business environment.