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As geopolitical risk spikes, a major index gets a revamp
Geovol risk gauge built by Nobel laureate Robert Engle to become Global Covol
![Robert Engle Robert Engle](/sites/default/files/styles/landscape_750_463/public/2017-10/Robert-Engle.jpg.webp?h=add65b51&itok=y0iJRRKa)
From Kyiv to Kansas, geopolitical risk is spooking global markets – but Robert Engle is sanguine. The NYU Stern Volatility and Risk Institute, which the Nobel Prize-winning economist co-directs, is renaming its index for geopolitical risk, Geovol, which measures the volatilities of assets when exposed to an exogenous global shock. Henceforth, the index will become Global Covol (Common Volatility).
Geovol is intended to model geopolitical risk, defined as a common shock to the volatility of a
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