Analyzing Country Risk Premium in ICSID Awards

Transnational Dispute Management, December 2019

A trend toward increasing transparency in rulings by international arbitration panels has made it possible to analyze how these tribunals treat economic and legal issues that are central to the resolution of arbitral disputes. In “Analyzing Country Risk Premium in ICSID Awards,” an article published in Transnational Dispute Management, Senior Advisor Jeffrey Cohen and Vice President Mark Berberian of Analysis Group contribute to this discussion by comparing how different tribunals consider valuation models when making awards.

The authors focus on one valuation topic: country risk premium, the additional return required by investors for the increased risk associated with investment in particular international markets. Using public awards and data from the International Centre for Settlement of Investment Disputes (ICSID), they consider a series of questions related to tribunals’ treatment of country risk premium in awards – such as the appropriate size of the premium and the method for its calculation – and make the case that increased scrutiny of expert analyses is the new reality of these proceedings.

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Berberian M, Cohen J, Grgeta E