We do not generate our own data, instead, we aggregate trusted third-party data from over 25 credible third-party data sources.
Since all the third-party sources use different metrics to assess the country risks, we employ normalisation and aggregation techniques to generate our own overall risk score and rating based on the component sources, applying expert judgment to derive the final overall country risk score.
Firstly, we compiled a list of 260 countries and territories based on the International Country Code standards.
Secondly, we referenced over 25 credible third-party data sources, grouped across five risk factor dimensions and marked the ‘actual’ score against each country.
Thirdly, we applied expert judgment to normalise the actual score for each data source; the methodology for this is available to our users.
Finally, we reviewed the composite risk scores across each of the 25 different risk factors and apply an expert judgment to derive the overall risk score for a country, which is based on a sliding scale from 1 (Extremely Low Risk) to 10 (Extremely High Risk).
As a result of applying a qualitative expert assessment the individual risk factors are not weighted equally or statistically, with greater emphasis placed on certain risk factor dimensions than others. Applying purely mathematical calculations to derive an overall risk factor, was considered initially but discounted due to the wide range of different variables and the potential for over or under-estimating key metrics. Country risk assessment is more of an art than an exact science!