Credit Risk Appetite: Country Risk

Managing country risk is a challenging task for banks. It is important to be able to identify country risks both effectively and efficiently when processing transactions and assessing credit proposals. Failure to do so can lead to banks accepting risks outside appetite. It can also slow down processing and lead to a loss of business. Here we explore the issues surrounding the identification of country risk. We also describe the methods used by banks to ensure country risks are identified and managed effectively and risk appetite is not exceeded.