Euromoney Country Risk (ECR) is an online community of economic and political experts that provides real time scores in categories that relate to economic, structural and political risk. The consensus expert scores, combined with scores on sovereign borrowers' access to international capital markets, together with data from the IMF/ World Bank on debt indicators, create the Euromoney Country Risk score for 186 individual countries.
ECR evaluates the investment risk of a country, such as risk of default on a bond, risk of losing direct investment, risk to global business relations etc., by taking a qualitative model, which seeks an expert opinion on risk variables within a country (90% weighting) and combining it with a basic quantitative value (10% weighting).
The qualitative score is visible independently of the ECR score, and it reflects a snapshot of a country's current position.
The ECR score is displayed on a 100 point scale, with 100 being nearly devoid of any risk, and 0 being completely exposed to every risk.
Views are collated from experts around the world, and the qualitative average is produced by combining evaluations of political, economic, and structural risk, together with assessments of sovereign access to international capital markets.
When applying political, economic, and structural assessments to a 100 point scale for the qualitative average only (rather than the full Euromoney Country Risk score), the following weighting is used: political 45%, economic 45%, and structural 10%.
Economic risk: participants rate each country for which they have knowledge from 0-10 across 6 sub factors to equal a score out of 100. The categories of economic risk scored are as follows: bank stability/ risk; GNP outlook; unemployment rate; government finances; monetary policy/ currency stability.
Political risk: participants rate each country for which they have knowledge from 0-10 across 5 sub factors to equal a score out of 100. The categories of political risk scored are as follows: corruption; government non-payments/ non-repatriation; government stability; information access/ transparency; institutional risk; regulatory and policy environment.
Structural risk: participants rate each country for which they have knowledge from 0-10 across 4 sub factors to equal a score out of 100. The categories of structural risk scored are as follows: demographics; hard infrastructure; labour market/ industrial relations; soft infrastructure.
Access to international capital markets: participants rate each country's accessibility to international markets on a scale of 0-10 (0=no access at all and 10=full access). These scores are averaged and then weighted to 10%.
Individual experts must apply a value to each sub factor before their score is accepted into the system.
Within each sub factor, ECR also asks experts for further information on the reasons behind each individual score, and these fall under the category of related factors. These are more like poll points, and do not directly affect the score. Instead, they inform a change made to a sub factor score and weight. For example, within the economic risk category of bank stability lie four further related factors: regulatory risk, trading exposures, asset quality and undercapitalisation. Individual experts are able to add more related factors and ignore ones which are not applicable.
Please complete all the assessments (economic, political and structural) for the countries which you are scoring.
It is important to note that regardless of a user's privacy settings, your individual score is always private and no other experts or subscribers in the system can see it.