Global asset managers based in New York, Boston, and San Francisco represent a burgeoning segment of the firm’s client base, due largely to the expansion of opportunities in emerging and frontier markets and the increasing impact of country and political risk on assets.
Companies in this industry use our services and products in the context of portfolio and risk management, whether it is to advise commodity and currency trading stratagems or to inform the purchase of political risk insurance to protect their investments against financial losses.
Many of the world’s development banks and lending agencies also use PRS and ICRG products to help balance their global portfolios. Academics at universities worldwide use our data as a means of factoring country and political risk into their specific research agenda. The following institutions are some of our leading academic clients:
And a range of companies involved in resource extraction use our analysis as part of their longer-term business development planning, and overall risk management process. These firms have global exposures in Africa, Latin America, and Asia.
“Your organization provides the only reliable, consistent, and valid measure of property rights protection… many researchers will be able to utilize it in order to understand the complex role of property rights protection in affecting changes in the polity. Thank you for the excellent work and service you provide for researchers.”Rollin Tusalem, Ph.D.
Assistant Professor of Political Science, Arkansas State University.
“PRS projections have been tested against foreign investor losses due to political reasons (using loss-claim data supplied by OPIC) and found to be the “most reliable.” Indeed, the “PRS model points to elements of the economic or business relationship that are most vulnerable to negative political influences.”L.D.Howell and B. Chaddick
“Models of Political Risk for Foreign Investment and Trade: An Assessment of Three Approaches,” 29(3), Columbia Journal of World Business (1994).
“Devalued currencies, coups, failed economic plans and other financial and political shocks are difficult to predict and can have disastrous consequences for portfolios invested abroad. But there’s good news, at least for equity investors…International Country Risk Guide…provides information that has great predictive value with respect to future equity returns around the world.”G. Epstein
“Risk Measures Prove To Be Excellent Forecasters Of the Rise and Fall of Markets Abroad,” Barron’s, March 11, 1996.
“A big problem with the events data is that they tend to be higher for large countries than for small countries and that it is very difficult to control for country size. Your internal conflict risk data do not suffer from this problem.”Arend Lijphart
Research Professor Emeritus of Political Science Department of Political Science, University of California San Diego.
“I have used PRS’ International Country Risk Guide index on over a dozen scientific publications [and] found…a significant ability of the PRS political risk indicator to predict realized political risk events. These data also allow us to address questions of great interest to a finance audience. For example, the same paper asks the question: how much of a country’s sovereign bond yield is due to political risk?”Campbell R. Harvey
Professor of Finance at the Fuqua School of Business, Duke University; Research Associate of the National Bureau of Economic Research in Cambridge, Massachusetts
“The ICRG data has several advantages in research over other measures. First, it is available for a far longer time period, extending back over 30 years for many countries. Second, it is geographically comprehensive, covering more countries than most sources. Finally, it reflects current events in a way structural measures cannot.”Robert J. Weiner
Professor of International Business, Public Policy & Public Administration, and International Affairs, at the George Washington University School of Business
“I’ve found PRS’s International Country Risk Guide data to be a rich and reliable source of information for my research. The panel is comprehensive, spanning more time and covering more countries than any other data set on country risk analysis. ICRG’s political risk indicators are especially valuable, as they are recognized as the most authoritative data available.”Reid W. Click
Associate Professor of International Business and International Affairs, George Washington University, Elliott School of International Affairs.
“…I would like to extend my sincere gratitude for PRS’s ongoing work to measure corruption and analyze the causes of corruption. The Korean government believes that the International Country Risk Guide is highly valuable and therefore is actively referring to the data for the development and implementation of anti-corruption policies.”Dr. Jin-young Kwak
Vice Chairperson of the Anti-Corruption and Civil Rights Commission, The Republic of Korea
Arend Lijphart, Patterns of Democracy: Government Forms and Performance in Thirty-Six Countries, 2nd ed., New Haven, Yale University Press, pp. 269-273, 2012.
Rios-Figueroa, Julio; Staton, Jeffrey K. “Unpacking the Rule of Law: A Review of Judicial Independence Measures”. The Committee on Concepts and Methods, International Political Science Association IPSA, Working Paper # 21, September 2008.
Arbatli, Elif (2011, August). “Economic Policies and FDI Inflows to Emerging Market Economies,” IMF Working Paper 11/192. Retrieved September 7, 2011, from http://www.imf.org/external/pubs/ft/ wp/2011/wp11192.pdf
David, Antonio; Bastos, Fabiano R. and Mills, Marshall (2011, June). “Post-conflict Recovery: Institutions, Aid or Luck?”. IMF Working Paper 11/149. Retrieved September 6, 2011 from http://www.imf.org/external/pubs
Kinoshita, Yuko (2011, May). “Sectoral Composition of FDI and External Vulnerability in Eastern Europe”. IMF Working Paper 11/123. Retrieved September 7, 2011, from http://www.imf.org/ external/pubs/ft/wp/2011/wp11123.pdf
Faruq, Hasan A. and Telaroli, Peter J. (2011, April). “Factors Affecting Manufacturing and Agricultural Productivity Trends among Asian Countries”. ASEAN Economic Bulletin – Volume 28, Number 1. Retrieved September 22, 2011, from http://muse.jhu.edu/login?uri=/journals/asean_ec
Several of the key metrics we monitor in our risk models for both the International Country Risk Guide (ICRG) and Political Risk Services (PRS) Country Reports are a government’s budget balances