The International Country Risk Guide (ICRG) rating comprises 22 variables in three subcategories of risk: political, financial, and economic. A separate index is created for each of the subcategories. Access to data for 1984-2016 is available.
The Political Risk index is based on 100 points, Financial Risk on 50 points, and Economic Risk on 50 points. The total points from the three indices are divided by two to produce the weights for inclusion in the composite country risk score. The composite scores, ranging from zero to 100, are then broken into categories from Very Low Risk (80 to 100 points) to Very High Risk (zero to 49.9 points). The ICRG model for forecasting financial, economic, and political risk was created in 1980 by the editors of International Reports, a widely respected weekly newsletter on international finance and economics. To meet the needs of clients for an in-depth and exhaustively researched analysis of the potential risks to international business operations, the editors created a statistical model to calculate risks and backed it up with analyses that explain the numbers and examine what the numbers do not show. The result is a comprehensive system that enables various types of risk to be measured and compared between countries.
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