The 2020 Country Risk Classification is now available for members. This publication allows members two months to prepare for the change identified risk levels before the document becomes live on 1 January 2020.
The 2020 Country Risk Classification will list all countries with their identified risks as well as highlighting countries who have changed from risk to low risk, or from low risk to risk.
Overall, 6% of countries saw no change in their risk rating, 52% had an increased risk and 42% had a decreased risk rating.
Since 2019, three countries have changed from risk countries to low risk countries: Jamaica, Kiribati and Malaysia, however no countries have moved from low risk to high risk countries.
What has changed?
Eight countries have been identified with significant change in their overall rating or in the rating of one or more dimensions without a change in classification, including: Grenada, Nicaragua, The Gambia, Tonga and Venezuela.
Another eight countries could not be assigned with an updated classification, as no data is available for one or more dimensions, which are: Anguilla, Bermuda, Guam, Martinique, Monaco, Réunion, San Marino and Virgin Islands (U.S.)
A total of seven countries fit the criteria to be listed as Most Severe Risk Countries: Democratic People’s Republic of Korea, Libya, Somalia, South Sudan, Syrian Arab Republic, Venezuela, Yemen.
What is measured?
The amfori Country Risk Classification uses the World Bank Worldwide Governance Indicators (WGI), which consist of six dimensions:
- Voice and Accountability
- Political Stability and Absence of Violence/Terrorism
- Government Effectiveness
- Regulatory Quality
- Rule of Law
- Control of Corruption
The overall score across the six dimensions defines how a country is classified, as a Risk Country or Low Risk Country. This classification supports amfori members in their human rights’ due diligence approach to define their priorities in terms of monitoring, capacity building and stakeholders’ engagement.
For more information, an additional tool, the Country Due Diligence, is available to amfori members to provide more specific information on sustainability issues, which are not reflected in this classification.