Russ Koesterich from iShares has cited David Wang as a creator of this list with the 15 riskiest countries in the world. Brazil is at 15th. We don’t understand how come Poland, Norway and South Korea are there while Portugal and Greece don’t even show up on the list.

Anyway, according to Russ, Wang based his conclusions on the following criteria: i) Countries exposed to the European sovereign debt crisis should be classified as higher risk; ii) Developed market countries with stable currencies during volatile periods should be classified as lower risk; iii) Emerging market countries with more cyclical sector exposure may be higher risk; iv) Emerging market countries with better fiscal and growth situations should be classified as lower risk.

Here’s his list of the top 15 riskiest countries today, i.e. the countries whose valuations are most sensitive to “risk-on” and “risk-off” sentiment shifts:

1.)    Hungary

2.)    Italy

3.)    Austria

4.)    Sweden

5.)    Poland

6.)    Finland

7.)    Spain

8.)    Germany

9.)    France

10.) Russia

11.) Norway

12.) South Korea

13.) Turkey

14.) Netherlands

15.) Brazil

Source: iShares
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