Uncertainty Surrounding the Country Risk Assessment. Describe the possible errors involved in assessing country risk. In other words, explain why country risk analysis is not always accurate.
Solution
THERE ARE MAINLY TWO TYPES OF ERRORS INVOLVED IN ASSESSING THE COUNTR RISK, THEY ARE AS FOLLOWS.
1./
ERRORS OCCURED DUE TO ASSIGNING INACCURATE RATTING TO THE FACTORS EFFECTING RISK, IN OTHER WORDS WHEN THE ANALIEST MAY BE BIASED WHILE ASSIGNING THE RATTING TO THE RISK FACTOR, FOR THAT THE COUNTRY RISK WILL NOT BE ACCURATE.
2./
WEIGHITING THE IMPORTANCE OF THE FACTORS IMPROPERLY, IN OTHER WORDS BASICALLY ASSIGNING WRONG WEIGHTS TO THE RISK AFFECTING FACTORS, WHICH CAN CHANGE THE COUNTRY RISK ASSESSMENT.
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Uncertainty Surrounding the Country Risk Assessment- Describe the poss.docx
1. Uncertainty Surrounding the Country Risk Assessment. Describe the possible errors
involved in assessing country risk. In other words, explain why country risk analysis is not
always accurate.
Solution
THERE ARE MAINLY TWO TYPES OF ERRORS INVOLVED IN ASSESSING THE
COUNTR RISK, THEY ARE AS FOLLOWS.
1./
ERRORS OCCURED DUE TO ASSIGNING INACCURATE RATTING TO THE
FACTORS EFFECTING RISK, IN OTHER WORDS WHEN THE ANALIEST MAY BE
BIASED WHILE ASSIGNING THE RATTING TO THE RISK FACTOR, FOR THAT
THE COUNTRY RISK WILL NOT BE ACCURATE.
2./
WEIGHITING THE IMPORTANCE OF THE FACTORS IMPROPERLY, IN OTHER
WORDS BASICALLY ASSIGNING WRONG WEIGHTS TO THE RISK AFFECTING
FACTORS, WHICH CAN CHANGE THE COUNTRY RISK ASSESSMENT.
