Assessment of Country Political Risks as an International Business Management Tool

Purpose The purpose of this article is to define methodological approaches to assessing country political risks as a tool for managing international business and substantiate the effectiveness of competitive analysis based on a point-rating assessment of the level of country risk. Methodology The authors, based on the global competitiveness index, taking into account the corrective influence of assessments of the country’s international rating position, apply methods of competitive analysis and point-rating assessment of the country’s political risks to determine specific, unique signs of this risk, which contributes to ensuring effective management of international business. Results It is determined that the country risk assessment can be based on the systematic application of a list of indices through which the country is described from the standpoint of real/potential risks in the political sphere. The proposal to use publicly available ratings data of international organizations or institutions engaged in research in the field of country risks as sources of information is substantiated. An algorithm for conducting a competitive analysis of countries based on selected criteria of country risks is presented. Originality/value The methodological approach to the assessment of country political risks proposed in the form of an algorithm can be considered as a theoretical and methodological tool for structural analysis of potential partners in the implementation of international business activities. In practical application, it makes it possible to assess the risks of specific forms of organization and areas of international business, as well as to assess the risks in the implementation of management functions in international business.