Risk Model

The risk advisory service distils the wisdom of the Economist Intelligence Unit's country risk team. At its heart is our proprietary, interactive country risk model.

The model can be used as your institution's primary tool for analysing country credit risk, as input into your in-house risk assessment process or as a check on your institution's own country assessments. The web-based risk model assesses the country credit risk of 100 emerging markets and highly indebted countries and provides an early warning system of financial crises in developing countries. Ratings and scores for six regional aggregates determine the riskiness of a region and serve as a benchmark for comparison.

What does the Risk Model provide you with?

• A comprehensive service covering 100 countries and six regions based on 77 indicators, both quantitative and qualitative, ranging across 13 different risk categories.
• Timely and accurate monthly risk assessments by our team of over 80 country risk analysts.
• Access to a database unequalled by any other service available in the marketplace, with scores and ratings going back to 1997.

What functionality does the Risk Model provide?

• Adjust the weightings and scores of any of the individual 77 indicators or choose a combination of our indicators and your own to derive a customised set of risk scores.
• Compare the indicator scores across countries, as well as view the historical scores for a single country.
• Access the data with simple to use navigation.
• Export and chart data by date, by country or ratings category.

What risk categories are provided by the Risk Model?

• Current account
• Liquidity
• Debt structure
• Monetary policy
• Exchange-rate policy
• Fiscal policy
• Political efficacy
• Political stability
• Financial structure
• Regulatory policy
• Global climate
• Trade policy
• Growth / savings

How we compare with ratings agencies:

Unlike the ratings agencies, we give our risk assessments via our model across 100 countries every month. The result is that we catch deteriorating or improving trends often before the ratings agencies issue formal warnings.

Our analysts are country experts and typically cover just two or three countries in a region. In contrast, a single employee at the ratings agencies will cover many more countries.

As part of the well-respected Economist Group, we provide ratings that are totally independent-we are not compensated by governments for our country ratings, unlike the ratings agencies.

Delivery

Online via the Internet