Sigma Plus Consulting
 

Customised Economic Scenario Generators

Economic scenario generators do not predict the future, but they do quantify the range of possibilities, and the probability of different severities of outcome. You can then stress test your business plans against different scenarios, and develop risk management strategies to deal with them.

The graph above shows a sample path for a regime switching model of cash rates and building activity.

While there are some strong generic products available, we believe that each customer's model should be built to suit their needs, that one size does not fit all people. For example, if your liabilities are subject to a cyclic risk, such as interest rates or economic growth, then a mean reversionary model is inadequate - we would recommend a regime switching model in such circumstances.

To learn more about some of the modelling techniques available to us, click on some of the links below:

For further information contact us at info@sigmaplus.com.au

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Last modified: November 16, 2002