Methods of Assessing Country Risk

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The Delphi technique is a popular method of assessing country risk, and involves the collection of several independent opinions the appropriate countries risk premium to be applied to the country under examination. In the Delphi technique, a group of experts are asked to quantify the country risk of a particular nation, without any input from other experts. By limiting any group discussion, the Delphi technique seeks to provide a realistic quantification of the country risk premium.

"Simulation analysis," "Monte Carlo simulation," and "scenario analysis," are techniques designed to measure stand-alone risk. The "Darden case method" is largely a fictitious term.