SimCorp has launched a new AI-powered capability within its Axioma Risk platform designed to automate the configuration of portfolio stress tests. By using natural language processing, the enhancement allows investment and risk managers to move from manual, multi-step workflows to AI-assisted setups. This shift reduces the time required to configure complex scenarios from hours to seconds, enabling teams to respond to market events in real time rather than being delayed by technical administration.
The tool enables users to describe macroeconomic or geopolitical concerns in plain English, which the system then translates into specific financial shocks and relevant market data. Beyond merely generating scenarios, the AI assists in identifying historical precedents and assessing the statistical plausibility of a test to ensure results are realistic. This helps managers gain deeper insights into tail risks associated with inflation, interest rate shifts, and global geopolitical instability without the need for spreadsheets or manual data exports.
Crucially, the update maintains rigorous calculation governance to meet increasing regulatory demands for transparency. While AI simplifies the initial design and iteration of stress tests, the analytical foundation remains fully auditable with human-in-the-loop approvals. This ensures that all decisions and analytics are explainable, allowing investment professionals to focus their specialized expertise on interpreting risk and making informed portfolio decisions.
Subscribe to our newsletter
