Risk Analysis Evaluations

Coface provides you with detailed study on the economic environment of each country and their business climate. These detailed reports help you evaluate the potential risk in operating in each country and to decide the suitability for you to extend operations.

Country risk analysis

With Coface’s expertise in country evaluations, more than 160 country assessments are available using a spectrum of indicators incorporating geopolitical or governance risks, economic vulnerability, the risk of foreign currency liquidity crisis, the severity of external indebtedness and the financial vulnerability of the banking system.

Regularly updated, they provide an estimate of the average credit risk on a country’s businesses. This is an invaluable tool, giving an indication of a country’s potential influence on businesses’ financial commitments.

Of course, there may be some very solid businesses in high-risk countries, just as there may be some risky ones in reliable countries. The overall risk is thus a combination of business-specific factors and factors relating to the country in which the business operates. Our analyses use a seven-level ranking. In ascending order of risk, these are: A1, A2, A3, A4, B, C, D and E.

Evaluation of the business environment

Evaluating the business climate of a country depends on the quality of a country’s private sector governance. The disclosure of financial information and the effectiveness of the legal framework in settling debts play a major role in this. 

At Coface we do this on the basis of:

• Expertise on the market – the advantage of our worldwide presence.
• Various assessments done by renowned international organizations

Coface’s assessment is not limited to, evaluating the liquidity and solvency of the country, but also takes into account, the microeconomic factors of the country.