We believe our approach to risk identification and management does not subscribe to political or economic orthodoxy. 

VogelHood’s THEIA™ analysis quantifies, calculates, and interprets government-related risk factors as disclosed in company filings. THEIA™ uses Natural Language Processing (NLP) techniques and general-purpose semantic and syntax algorithms that apply at scale, across documents filed with the Securities and Exchange Commission (SEC). Using semantic matching, government risk is parsed into two categories, general and specific, and measured on a company-by-company and sector basis over time. General government risk (Category 1) is expressed by terms including, but not limited to, regulatory, government, legislative, etc. Specific government risk (Category 2) identifies mentions of agencies, laws, and other regulations in free text. VogelHood’s syntactic pattern recognition involves labeling relationships between words, such as subject, object, modification, and others to suppress false positives.

THEIA™ 2014 & 2015 Total Risks Assessment 

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  • According to 2014 and 2015 government risk factor analyses, the financial sector exhibits the highest degree of government related risk, with total self-identified risks of 8,237 and 8,478 in 2014 and 2015, respectively. Over the same time period, the healthcare and energy sectors rank the second and third, respectively.
  • In 2014, the S&P 500 companies reported a total of 29,001 self-identified risks across the ten sectors. The telecom services sector reported the lowest amount of disclosed government-related risk with 236.

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  • Based on a company-specific analysis, VogelHood identified the top ten companies reporting the most risks in 2015: CVS Corp, Noble Energy, Pioneer Natural Resources, Citigroup, Fifth Third Bancorp, MetLife, DaVita Healthcare Partner, Regeneron Pharmaceuticals, Edison International, and Entergy Corp.
  • The chart gives a better illustration of the top ten companies and the sectors they represent. Among the top ten companies, three of them are financials (blue); six companies are in the energy, healthcare, and utility sectors (orange, brown, and grey); only one company is in the consumer staples vertical (light blue) (the color of bubble represents the sectors and the size of the bubble represent the 2015 total risks).