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BlackRock Geopolitical Risk Indicator (BGRI)
The BlackRock Geopolitical Risk Indicator (BGRI) is a proprietary index developed by BlackRock that quantifies the potential market impact of geopolitical risks. It uses natural language processing to analyze the frequency and sentiment of news coverage, brokerage reports, and other text related to specific geopolitical threats. Higher readings indicate greater market attention to geopolitical risks, which often correlates with increased volatility in equities, bonds, and currencies.
Example
“The BGRI spiked to its highest level in two years amid escalating trade tensions, prompting portfolio managers to increase their hedging positions.”