According to the Social Risk Index (SRI) created by the credit insurance company Euler Hermes, the Czech Republic is the 28th safest country in the world in terms of systemic social risk.
According to Euler Hermes, the risky factors include mainly anti-government protests and other incidents, which could cause changes in the political and business climate of each country.
The SRI measures the underlying strengths, weaknesses, and perceptions of political, institutional, and social frameworks for 102 countries. However, the index does not gauge the probability of a social crisis, nor does it predict potential future social unrest events. It is rather a vulnerability indicator that focuses on the longer-term structural determinants of social risk.
The latest list shows that Denmark, Finland, and Sweden exhibit the lowest levels of social risk. Germany ranked fifth while France ended up in ninth place.
On the bottom end of the ranking stands Nigeria, Venezuela, and Angola, as they exhibit the highest levels of social risk, with Venezuela and Angola experiencing some of the largest deteriorations over the last five years.
Advanced economies (AE) are generally more resilient to systemic social risks. All countries with advanced economies placed within the first 35 places of the ranking, with Greece (35th) and Italy (30th) placing the lowest of the AE countries.
However, even in some emerging markets (EM), indicators of systemic social risk are comparable to those assessed in advanced economies. One of these countries is the Czech Republic.
From a regional point of view, the rapidly developing European EMs performed best on average. These include Slovenia, Estonia, the Czech Republic, Croatia, Slovakia, Poland, Lithuania, and Hungary.
Euler Hermes is a global leader in receivables risk management with more than 52,000 clients and representation in more than 50 countries.
Title image: People enjoy their beers at a restaurant terrace in Prague, Czech Republic, Monday, May 11, 2020. Bars, restaurants and cafes offering outdoor seating started to serve their first consumers on March 14, as the Czech Republic took steps to normalcy amid the coronavirus pandemic. Restaurants still remain closed inside. (AP Photo/Petr David Josek)