Country risk

Risk management

The risk that a country or an entity within a country will not be able to honour its financial obligations.

Exposures can arise from - for example:

• Interruption of business at the country level (political sovereign risk)
• Currencies being blocked from cross-border repatriation (transfer risk) and
• Central bank liquidity shortages preventing conversion (convertibility risk).

See also

• Exposure
• Political risk