Table 1

Political risk assessment models by different institutions

InstitutionCategories and weightNumber of countries coveredDefinition of political riskPolitical risk componentsSource of data
Thomson Reuters country risk rankingPolitical risk (50%)240NAType of governance
Civil liberties and political rights
Media freedom
Government effectiveness
Regulatory quality
Rule of law
Political terror scale
Armed conflict
Human rights
Failed states index
Survey respondents and experts judgement
PRS group International Country Risk Rating (ICRG)Political risk rating (50%)141“A means of assessing the political stability of the countries covered by ICRG on a comparable basis”Government stability
Socioeconomic conditions
Investment profile
Internal conflict
External conflict
Corruption
Military in politics
Religious tensions
Law and order
Ethnic tensions
Democratic accountability
Bureaucratic quality
Expert judgement
EIU country risk servicePolitical risk (20%)131A range of political factors relating to political stability and effectiveness that could affect a country's ability and/or commitment to service its debt obligations and/or cause turbulence in the foreign-exchange marketExternal conflict
Governability
Electoral cycle
Orderly transfers
Event risk
Sovereignty risk
Institutional effectiveness
Corruption
Corruption in the banking sector
Commitment to pay
Expert judgement
China export and credit insurance company – SINO RATINGPolitical risk (25%)192“Examination of the stability of political institution and the diplomatic relations with other countries”Political institution
Political stability
International relations
Expert judgement

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