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Economic and political risk evaluation service launched

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Global risk consultancy Control Risks Group Holdings Ltd. and independent global advisory firm Oxford Economics have launched an Economic and Political Risk Evaluator service.

The Economic and Political Risk Evaluator provides customized political and economic risk forecasting services, the companies said Tuesday in a joint statement.

Control Risks and Oxford Economics chose 11 variables that they found are the most relevant for assessing political and economic risk. They are sovereign risk, exchange rate, trade credit, political stability, ideology/policy, international relations, business environment, operating cost, market demand, security environment, and social cohesion, an Oxford Economics spokesman said on Wednesday.

Control Risks and Oxford Economics have developed a model to assess 164 countries around the world, giving them an overall risk score. Economists and political analysts, worked together to assess each country, according to the spokesman.

“The service is designed for firms that operate internationally or who need to monitor risks to their operations or those of their suppliers, so quite a number of firms could benefit from the service. We have already spoken with financial service firms, automotive manufacturers, mining companies, and supranational organizations for example — so it cuts across a wide range of sectors” the spokesman said.

“Understanding the interlinkages between economic and political risks is of critical importance to our clients, and we are proud to have collaborated with Control Risks to produce a service that will provide the basis for more informed decisions,” Oxford Economics CEO Adrian Cooper said in the joint Control Risks and Oxford Economics statement.