Defining the Perils

Strikes, Riots & Civil Commotion
A disturbance of the public peace by three or more private persons assembled together and acting with common intent, including worker or student demonstrations, general strikes and riots.

Terrorism
The use of force or violence by one or more persons or of any organisation, the object of which includes the intimidation or coercion of a government and/or the civil population for political and/or religious and/or ideological objectives.

War & Civil War
Declared or undeclared hostile action between states or different sections or parties of the same country or nation.
These events include military invasion and/or aerial bombardment by sovereign and/or international armed forces or a state of hostility among opposing citizens of the same country or nation.

Country Economic Risk
An indicator of the propensity for economic adjustment including significantd evaluation and/or high inflation and increases in the level of credit defaults among domestic businesses.

Currency Inconvertibility and Transfer Risk
An indicator of foreign exchange reserves and government (including central bank) action or conditions that may prevent an investor or entity trading with the country from converting local currency (capital, interest, principal, profits, royalties, payment obligations and other remittances) into foreign exchange and/or transferring foreign currency outside the host country.

Sovereign Credit Risk
The risk that the government of a country will default on its payment or delivery obligations in local or foreign currency.

Expropriation
Government action or inaction, which has the effect of depriving the owner of an asset of all or some of their rights and benefits, whether due to a single measure or to a series of measures.

Contractual Agreement Repudiation
The failure of a government entity to honour, or the repudiation by a government entity of, its obligations under an operating agreement or licence that sets out the rights of or terms upon which a foreign investor conducts business in a territory.

Legal/Regulatory Risk
An indicator of the effectiveness of the legal system, the freedom of the judiciary, the possibility of adverse or discriminatory legal or regulatory decisions. This is also an indicator of transparency, levels of corporate governance and corruption.