This volume states the concepts and methods of assessing business risk in foreign countries and reports the extent to which they are applied by banks and companies. The authors identify the basic components of a system which estimates the risk incurred by firms entering into business relationships in foreign countries. Qualitative and quantitative methods for both short term and long range forecasting of the political, finanacial, and operating risks are presented. Careful consideration is given to relating country risk assessment systems to the decision making process in large organizations. In addition original research is provided to determine the actual role and relative importance of country risk assessment. Findings include information on the range in the use of outside services, in-house systems, and/or disregard of country risk assessment systems; the composition of systems and resulting reliability, including people involved, and the emphasis on evaluation of past performance; the acceptance of recommendations by top management and the actual impact on organization decision making; and resistance to assessments and recommendations by line personnel in the affected country.