Country risk refers to the likelihoo that changes in the business environment adversely affects operating profits or the value of assets in a specific country. For example, financial factors such as currency controls, devaluation or regulatory changes or stability factors such as mass riots, civil war and other potential events contributing to companies' operational risks. This term is also sometimes referred to as political risk, however country risk is a more narrow term, which generally only refers to risks affecting all companies operating within a particular country.