Country Risk Analysis

Course Overview 

Over the last decades an enormously high number of countries stopped the repayment of their external debt or the service on that debt, with the consequence being that the financial industry faced huge losses. 

This course will guide you through the concept of country risk, its parameters, its assessment, the link between risk and country limits, the link between country limits and the capital ratios. It will also examine the use of external country risk ratings.

Course Content 

Introduction

• Definition of country risk
• Types of countries.
• History of country risk
• Country risk assessment
• Qualitative and/or quantitative assessment  

Economic risk

• Definition of economic risk
  • Short term economic risk
  • Long term economic risk
• Leading economic indicators
  • Short term debt indicators
  • Long term debt indicators
  • Overall indicators 

Political risk

• Definition of political risk
  • Short term political risk
  • Long term political risk
• Leading political indicators.
• Time dimension
• Methodologies
  • Quantitative methodologies towards political risk
  • Qualitative methodologies towards political risk
• Regulations concerning country risk
  • Overview of the banking regulations in different countries concerning country risk 

External country risk assessments

• Euromoney country risk method
• Institutional Investor’s country credit rating
• The BERI Index
• International Country Risk Guide
• Frost & Sullivan 

Evaluating country classification Systems

• How to make the link between the risk and the risk category
• How to make the link between the risk category and the country limit
• Imputations of transactions on the country limit 

Sources of information

Delivering this course in-house for you to a number of participants could be very cost effective. Please call us on 020 7387 4484 to discuss this further.

If you have any questions about this seminar please write to us at post@redcliffetraining.co.uk.