A recent slew of sovereign rating downgrades has stoked concerns heightening investor risk aversion towards the euro zone and weakening economic prospects. However, sovereign risk is only one aspect of the risk of doing business and many other risk factors can affect firms’ investment and trade exposures. To gain a full picture businesses need to assess much broader measures of risk otherwise they run the risk of missing out on opportunities or leaving themselves exposed to risks not captured by sovereign ratings.
Read the full Country Risk Article.