The global financial crisis has caused a strain on liquidity which, when coupled with the economic downturn being experienced in the industrialized world, is placing a significant burden on emerging market economies. This challenging economic and financial situation may result in payment defaults by countries and a potential for heightened political risk in terms of transfer restrictions. Foreign direct investment remains important during these times and could play a key role in helping economies through these turbulent times. Political risk mitigation tools, such as PRI, will be important as investors manage their exposure.

Control Risks foresees investors and insurers placing greater attention on political risks and suggests risks be managed proactively with risk management tools. Doing so requires a full understanding of the implications of the financial turmoil; Business Monitor International looks at the sovereign risk ratings in Latin America with an assessment of the risk of sovereign default in Ecuador.

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