By Charlotte GAUCHON
28 March 2025
International transactions expose companies to particular risks. Between the time goods leave the country and the time payment is received, a number of events can jeopardise the commercial transaction. Political risk or «country risk» Political risk, now commonly referred to as «country risk», is a specific feature of export transactions. It can take various forms. Conflict and social unrest The outbreak of war, revolution or popular unrest in the country of destination may prevent performance of the contract or payment of the debt. These events, which are by their nature unforeseeable, paralyse commercial transactions and often make it impossible to recover sums due. Case law has gradually broadened this concept to include large-scale strikes and social unrest that significantly disrupt a country's economic activity. Governmental decisions Measures taken by the authorities of a foreign State may jeopardise the performance of international contracts....
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