How to Assess Business Risk in a Foreign Country

You don’t really know a place until you spend a significant amount of time there, seeing different people and places and getting a true feel for “what it’s like.” That said, if you’re running a business and looking for new customers, it might behoove you to sell what you’re selling to customers in different countries, right? But what if you know nothing about certain countries? Do you have the time and energy to go there– live there– and really get to know the place? Probably not. That’s why there’s companies like SMG Consulting Services to help you assess your business risk in certain foreign countries. We have the knowledge, experience and relationships that you don’t have– so they can help you assess risk based on what they know!

Risk Analysis in Latin America

A risk analysis is important because it informs you about a country’s economic, political and business climate. Information is power, right? You want to avoid losses. Instead you want to invest and then grow… Certain countries might be great fits for who you are and what you do/offer. Others? Not so much. As a business, you should know what the risks are in markets you’re not familiar with– and then you can ask yourself, “Can we manage or mitigate those risks? Is it worth it to try and establish a presence in a certain country?” 

Typically, qualitative and quantitative assessments can help you assess business risk. What, for example, is the debt-to-gross domestic product ratio or the beta coefficient of the Morgan Stanley Capital International index for a country such as Paraguay? What’s going on politically in the country? What rumors are out there and could affect your business in a good or bad way if they come true? How good of a credit rating does a country have? Public and government resources can be accessed to analyze country risk.

Need help assessing risk in Latin America? Email SMG Consulting Services at for more info. 

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