Management Strategies of Country Risk within Financial Institutions

Financial institutions, like any other company for that matter, have as a main objective the diversification and expansion of revenue and profit sources. To this purpose they have expanded ever more their activity across national borders. But, as it is well known, especially if we relate to the current economic-social and politic circumstance, this strategy increases the risk of financial loss, exposing the bank to country risk. And as “the secret of success for a company is to be prepared for any risks, when they will occur “, all banks must possess a country risk management process which, although it varies depending on the volume and the complexity of the international activities include a series of steps which must be implemented mandatory.