Country Risk: A July 2023 Update

This article provides a comprehensive framework for assessing country risk across multiple dimensions including democracy, violence, corruption, and legal protection, then translates these into measurable equity risk premiums for use in company valuation and investment hurdle rates. The author argues that companies should assess risk based on operational exposure (where they produce and sell) rather than incorporation jurisdiction, and provides detailed guidance on currency treatment and risk premium calculation across 180+ countries.