Financial stability and risk evaluation of the Baltic states

Abstract

Targeted country risk assessment is important and is a growing topic with each passing year. Investors use a number of approaches to determine whether a country is suitable for investment to understand if they can safely invest. This article aims to assess the risk in the Baltic States and identify the riskiest country. So, at the beginning, we describe the country risk assessment methods, explain what financial soundness is, review credit ratings, interest rates, CDSs across borders. Then, using correlation, regression, SAW methods and comparative analysis, we will identify the riskiest country in the Baltics.