Country risk is the exposure to a loss in cross-border financing, caused by events in the country to which the licensee has exposure and includes all forms of financing whether to the government, a licensee, a private enterprise or an individual. Country risk is therefore a broader concept than sovereign risk, which is restricted to the risk of financing to the government of a sovereign nation. Transfer risk, on the other hand, represents the risk of loss due to repatriation or remittance restrictions imposed by a foreign government that make it impossible to remit, fully or partially, the proceeds of obligation owed to the licensee.