Overview

Numerix Economic Scenario Generator (ESG) is a sophisticated financial simulation platform designed to model and generate realistic economic scenarios across multiple asset classes. It supports quantitative risk management, valuation, and regulatory compliance by creating consistent market and economic scenarios for interest rates, equities, credit, inflation, FX, and more. ESG leverages advanced stochastic modeling techniques to simulate the future behavior of financial variables, enabling financial institutions to stress-test portfolios, perform scenario analysis, and support asset-liability management. The system is flexible and scalable, integrating seamlessly into risk frameworks and valuation engines for both standalone use and enterprise-wide deployment.

Features and Capabilities

• **Scenario Generation: **Provides multi-asset economic scenario generation with consistent stochastic processes for interest rates, equities, FX, inflation, credit spreads, and more.
• **Model Flexibility: **Supports a wide range of modeling approaches including risk-neutral and real-world measures, affine term structures, and regime-switching models.
• **Calibration: **Enables automatic calibration to current market data and historical time series, ensuring realistic and up-to-date scenario generation.
• **Multi-Currency Support: **Generates economic scenarios across multiple currencies with integrated FX dynamics.
• **Stress Testing & What-If Analysis: **Facilitates custom scenario creation for stress testing, sensitivity analysis, and regulatory capital modeling.
• **Integration & API: **Provides APIs and integration capabilities to embed scenario generation into enterprise risk management, pricing, and portfolio management systems.
• **Performance & Scalability: **Engineered for high performance, capable of producing large scenario sets efficiently to support large portfolios and complex risk calculations.
• **Compliance Support: **Helps financial institutions meet regulatory requirements such as Solvency II, Basel III, and IFRS 17 through robust scenario modeling.
• **User Interface & Reporting: **Includes tools for scenario analysis visualization, reporting, and exporting results for downstream analytics.