SimCorp has introduced an artificial intelligence capability for stress testing market scenarios within its Axioma Risk platform.
The enhancement uses natural language processing to enable investment managers to design customised market scenarios and identify historical precedents without manual configuration. It identifies portfolio vulnerabilities and interprets risks arising from interest rate changes, currency movements or geopolitical events.
“Accelerating stress testing workflows can be game changer for investment teams,” said Ian Lumb, head of risk and performance product management. “When stress test configuration takes hours, risk teams cannot respond to events in real time. We are removing that bottleneck with AI-powered stress testing.”
The system translates macroeconomic concerns into financial shocks and provides statistical metrics to evaluate the plausibility of each scenario.
Subscribe to our newsletter
