Global business firms rely on the country risk rating scores provided by leading rating firms in making their business expansion and investment decisions. Also, we have other agencies providing ranking of countries based on specific issues like Ease of Doing Business, Transparency Index, Terrorism Index, Happiness Index, Business Confidence Index, etc. that have a specific purpose. Most of these models were prepared in the context of globalization with the focus on developed nations.
Currently, there have been rapid changes in technology and AI-driven business models, trade wars, terrorism threat, leading to complex risks and challenges for the business to expand globally.
The Country risk assessment tool helps a company to identify opportunities and expand globally. It is necessary for a company to have an internal tool that can be used by assessing the opportunities and risks to expand and enter new geographical areas.
A risk score is created based on an algorithm that captures the relevant factors and depending on computed score, the company can take decision to enter a country’s market, or explore investment opportunities.
