Economic Scenario Generator (ESG) is special software designed to generate economic scenarios supporting valuation and risk management analysis. With the use of econometric techniques, Triple A – Risk Finance real world Economic Scenario Generator generates real life simulations of economic variables such as term structure of interest rates, inflation rates, equity indices and bonds. Real world ESG is a flexible and easy-to-use tool, needed among others for capital management based on risk assessment, asset and liability management.
The second variant of ESG is the ESG reflecting the current market or risk neutral ESG. It may be used to generate scenarios for valuation of options and guarantees included in insurance agreements and products.
In addition to providing a number of generic models , we generate individual scenarios with calibration reports.