Country risk analysis (CRA) statistical credit scoring models have difficulty measuring political risk events.

Question

Quizplus · Accepted Answer

CRA statistical credit scoring models typically focus on financial and economic factors, and may not fully capture the impact of political risk events on a country's creditworthiness. Political risk events, such as changes in government leadership or civil unrest, can have a significant impact on a country's economic stability and ability to repay its debts.

Country Risk Analysis (CRA) Statistical Credit Scoring Models Have Difficulty