The guide to damages in international arbitration - Country risk

The guide to damages in international arbitration - Country Risk

Tiago Duarte-Silva
International Arbitration

In his chapter in Global Arbitration Review, Tiago Duarte-Silva explores the difficult task of assessing how an asset’s value is affected by its location in a foreign country. This effect, commonly known as country risk, is a reflection of the potentially adverse effects of the political, economic and financial risks of operating in a country.

There are a wide variety of approaches to measure country risk and most of this variety is concentrated in adjustments to the discounted cash flow method of valuation. As the various approaches to measure country risk may often lead to different results, the correct approach or approaches must be chosen with due care.

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