In this chapter the authors begin by summarizing the extant literature on political risk and capital flows, which has gradually evolved beyond treating risk as a country-level black box to incorporate interdependencies and contingencies in risk analysis that touch on each of the four dimensions that they highlighted above. Their framework for country risk analysis extends this tendency and develops a more complete depiction of the risks and opportunities faced by managers. They emphasize the heterogeneity that exists within the country risk across various industries, firms, and even projects. They include three detailed applications of the broader governance framework that they provide.