This book provides an up-to-date guide to managing Country Risk. It tackles its various and
interlinked dimensions including sovereign risk socio-political risk and macroeconomic risk
for foreign investors creditors and domestic residents. It shows how they are accentuated in
the global economy together with new risks such as terrorism systemic risk environmental risk
and the rising trend of global volatility and contagion. The book also assesses the limited
usefulness of traditional yardsticks of Country Risk such as ratings and rankings which at
best reflect the market consensus without predictive value and at worst amplify risk aversion
and generate crisis contamination. This book goes further than comparing a wide range of risk
management methods in that it provides operational and forward-looking warning signs of Country
Risk. The combination of the authors' academic and market-based backgrounds makes the book a
useful tool for scholars analysts and practitioners.
