Instructional guidelines on improving the mechanism for country risk index calculation by the BERI model

In this article, the author provides instructional guidelines for optimization and unification of country risk index calculation by the BERI model. The macroeconomic problem of country risks accounting is determined while developing strategies for companies to enter foreign markets. The basic BERI model of comparative type, which is widespread in experience of international companies as a tool for determining the level of risks of business environments in the world’s countries, is described. Step-by-step algorithm for calculating the country risk index by the analyzed model is considered. Proposals for improvement of the comparative BERI model in order to reduce the influence of the subjective factor and to increase the level of objectivity in calculations are developed. The unified list of secondary information sources for assessment of the level of country risks is justified. Detailed analysis of an example of country risk index calculation is presented on the basis of the BERI model improved by the authors for 3 countries: Azerbaijan, Armenia and Kazakhstan. A conclusion is made about practicability of using the comparative BERI model, improved by the authors, in experience of international companies.