The Subnational Risk Index (IRS) built by Colombia Risk Analysis arises as a response to the information asymmetries that domestic and foreign companies encounter when trying to enter the Colombian market. In that sense, the Index highlights departmental differences based on six major categories (Security, Politics, Economy, Institutional, Society, and Environment) to simplify the decision-making process of companies. The objective of the Index is to account for existing and potential risks for companies in the different departments of the country, according to the productive sector in which they are interested in investing.
Having a product such as the Subnational Risk Index will allow national and international companies interested in investing to understand the risks that their operations may face. In that sense, these companies will have the advantage of planning, designing, and implementing prevention and mitigation measures even before the potential risks arise.
The categories that make up the Index were selected in a precise manner. These consider theoretical propositions and empirical analyses to understand, in aggregate, the position of each department in terms of investment risk. Thus, the index, and the analysis that follows from it, has a territorial approach from a business perspective.
Read the full report here: https://bit.ly/RiesgosOrinoquia2023_ENG
