With terms like “volatility,” “market correction” and “rising risk” dominating headlines, BlackRock’s recently released public site Geopolitical Risk Dashboard helps clients understand how market volatility will affect their portfolios and business through three interactive charts.
The dashboard acts as a barometer of the global risks facing financial markets by analyzing financial news stories, analyst reports and tweets. The dashboard outlines and scores 10 risks based on the likelihood that each will happen as well as its potential market impacts. Clients can create a global index chart from the list of 10 risks, which currently include Russia-NATO tensions, European fragmentation and major terror attacks.
Geopolitical Risk Dashboard(Truncated)
Risks can be sorted by potential market impact, likelihood and BGRI score, a market attention indicator. Clients can drag inside the first chart to zoom in, show the history dating back to 2006 and view the score. The horizontal axis measures the severity of market impact, and the vertical axis measures the likelihood of each event. The firm supplements the chart with a thorough background of events, including recent developments, escalation triggers and market implications. The second chart measures the relative likelihood of each of the 10 events to impact global equities.
Each month, the firm updates the third chart to focus on a new risk. This month spotlights gulf tensions with an interactive chart that chronicles the history of tensions in the Middle East, including the Arab Spring and Iran nuclear deal.
The dashboard stands out for its intuitive interface and the detailed historical background it provides for the most important global risks facing markets today, including its perspective on each scenario based on its team of political, portfolio management and quantitative analysis leaders’ expertise.
Focus Risk Chart (Truncated)