Human Rights - Part of Country Risk Assessment

By: Ian Campbell | Mon, Nov 14, 2011
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As things move forward, I am expecting Country Risk and related issues to be an ever increasing investment/trading focus. Before embarking on what I am forecasting in this regard, it strikes me as important to spell out what I include as Country Risk issues - a list of things that I continuously add to as I read and think more about this.

Wikipedia defines 'Country Risk' as "the risk of investing in a country, dependent on changes in the business environment that may adversely affect operating profits or the value of assets in a specific country".

Broadly, when I think of Country Risk in an investment or trading context I currently principally focus on (for each country in question) the:

Again, I think the probabilities are high that going forward Country Risk issues will become increasingly important in investor and trader risk analysis. Accordingly, in the next few weeks we will be adding - what we think will be - a highly useful and important Investor/Trader Country Risk research component data feature to StockResearchPortal.com.

With respect only to societal change, societal demands and external influences that I think are 'Country Risk' related, to cite but one example see 'Zambia Copper Mines Caught Between Miners and Chinese Investors' - reading time 5 minutes. If you invest or trade in mining and oil & gas equities I strongly suggest you read this article, think hard about what you have read, and discuss Country Risk in a general sense and conceptually with your investment advisor(s), using that article and this commentary as a 'taking-off point' in that discussion.

With respect to the article, in summary it reports/says:

Clearly, in my view, these are things to think hard about if you invest or trade in resource company equities.

 


 

Ian Campbell

Author: Ian Campbell

Ian R. Campbell, FCA, FCBV
Business Transition Simplified

Through his www.BusinessTransitionSimplified.com website and his Business Transition & Valuation Review newsletter Ian R. Campbell shares his perspectives on business transition, business valuation and world economic and financial markets influences on those two topics. A recognized business valuation and transition authority, he founded Toronto based Campbell Valuation Partners Limited (1976). He currently is working to bring his business valuation and transition experience to both business owners and their advisors in our new economic, business and financial markets normal.

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