Came across an interesting article from the Harvard Business Review today called Managing Risk in an Unstable World. It talks about how one can analyse relative risks of foreign investments where conventional metrics like GDP per capita or economic growth just don’t cut it. It recommends assessing political risk as well as economic risk due to the high correlation between the two.
How is political risk assessed? The author recommends a four-dimensional approach around measuring: the strength and stability of government,? social trends, security within the country and economic factors.
It’s free so check it out