Economic Scenario Generator (ESG) software uses to model thousands of potential future paths for global economies and financial markets . These tools are essential for financial institutions to perform risk management, asset liability modeling (ALM), and regulatory reporting under frameworks like Solvency II , IFRS 17 , and GAAP . Core Functionality & Models
Modeling for hundreds of classes, including equities, corporate bonds, and alternative assets.
Modern ESG software typically provides two primary simulation types: Economic Scenario Generator Software
Simulations for GDP, unemployment, inflation, and real wages. Leading Commercial Software Platforms
Recent industry awards and research identify several dominant commercial platforms: Economic Scenario Generator (ESG) software uses to model
Libor Market Model (LMM), Affine models, and stochastic volatility models.
Used for pricing complex options, hedging, and valuing insurance liabilities where market prices must be matched. Used for risk management, strategic asset allocation (SAA),
Used for risk management, strategic asset allocation (SAA), and capital modeling.