Investors warm to quant tools to gauge political risk

Many funds have lost confidence in traditional ways of measuring political risk

Political sentiment
The more positive the BGRI score, the more concern for geopolitical risk there is in the market

BlackRock, the world’s largest asset manager, is looking to use text sentiment analysis to gauge geopolitical risk, which it says is at its highest level since the Russian invasion of Crimea in 2014.

The BlackRock Geopolitical Risk Indicator (BGRI) works by tracking the number of times geopolitical risk is mentioned in the Dow Jones Global Newswire and Thomson Reuters’ broker report database – and crucially, the sentiment of the text. The more positive the BGRI score, the more concern for geopo

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