In the world of multinational business, understanding and handling country risk is crucial for making smart decisions about global projects. Companies use different methods, like checklists and surveys, to figure out the risks involved. They look at things like how efficient a country's bureaucracy is, what interest rates are like, and how fast industries are growing. Then, they give each risk a score based on how important it is. Adding up these scores gives them an overall rating for both political and financial risk, which helps them decide how risky a country is overall. Including country risk in financial planning is important for multinational companies. They have two main ways to do this: changing the discount rate or figuring out how different risks might affect cash flow. Changing the discount rate is a broad way to account for all risks at once, while looking at cash flow gives a detailed view of how each risk could impact profits. Also, it's crucial to think about uncertainties and different situations, especially for long-term projects, to make sure decisions are solid even as risks change