Guide to Country Risk: How to identify, manage and mitigate the risks of doing business across borders

by Mina Toksöz

Country risk explains the things that can go wrong when business is conducted across borders. It's not just multinational companies, with factories worldwide and complex operations, that need to understand sudden changes in business conditions. These can affect any small firm that may be looking to expand sales abroad or work with a foreign supplier. The 2008-09 global financial crisis and the Arab Spring showed us how quickly and dramatically business conditions in any country can worsen and spread. But a thorough understanding and careful management of country risk will help a company survive a crisis -- and even open up new opportunities.

The Economist Guide to Country Risk explains:

What risks foreign investors face, and how to measure and manage them in a systematic way.

Why political and economic shocks are so hard to predict.

Where economies are vulnerable and how existing risk models spot (or miss) signs of impending disaster.

The typical bad habits of managers who ignore the warning signs.

How and where the next crisis will emerge.

Genres: Nonfiction, Business

288 pages, Paperback

First published November 20, 2014

Reviews

[Aaron · Rating 4 out of 5]

I'll give it one star more than the previous reviewer, but in performing a country risk assessment, this should be one of multiple materials referenced, thereby reducing the risk of introducing biases via 'diversification.'

[Ryan · Rating 2 out of 5]

Too focused on financial markets to be useful to most. Some good ideas but you can get that in the first 50 pages and reading the whole book is not particularly necessary

[X · Rating 4 out of 5]

I particularly enjoyed the diagrams and clear structure of this book; which helped someone not specialised in this area to enjoy it.

[Graham · Rating 3 out of 5]

A fine conceptual introductuon, but far more heavily focused on financial and market-related risks than anything else. The book tends to fall into the very trap it warns against, as a neoliberal complacency tends to transfer the blame to states and regions rather than questioning certain financial instruments and institutions. But even just for becoming acclimated to the terminology, this serves that primer role well.

[Marshall Layne · Rating 3 out of 5]

Informative but dry

This book is not anecdotal. It is a dispassionate study of recent crises in international finance. Basically the whole book can be summed up with the rule, "Pay attention to world bank regulations." This is, however, a handy book of international case studies for risk managers. It describes a number of international incidents where countries' banking systems went pear-shaped.

[Michael · Rating 4 out of 5]

Very good practical book. It starts off with a history of risk, definition of that risk, ways to identify, and proposed solutions. I have highlights throughout the book as the author makes very astute observations. Recommended if you're into country and political investment risk.

[Arpita · Rating 3 out of 5]

This book gives a good oversight of the aspects to keep in mind while thinking about risks faced by cross border investors. Most of the chapters are quite relevant, although the reading is a bit dry but only because it can get quite technical at times.