For example, financial factors such as currency controls, devaluation or regulatory changes, or stability factors such as mass riots, civil war and other potential events contribute to companies' operational risks.
Political risk analysis providers and credit rating agencies use different methodologies to assess and rate countries' comparative risk exposure.
Credit rating agencies tend to use quantitative econometric models and focus on financial analysis, whereas political risk providers tend to use qualitative methods, focusing on political analysis.
However, there is no consensus on methodology in assessing credit and political risks.
Source: Euromoney Country Risk - published January 2018.