Master Stress Testing with the Power of AI

Traditional stress testing remains essential for understanding tail risk, but the challenge lies in properly calibrating scenarios that reflect realistic market relationships. Watch this recording to get a comprehensive framework for designing and implementing effective stress tests.

What you'll learn:

• Stress testing fundamentals: Understand the core principles that make stress tests effective tools. Explore the differences between historical and transitive approaches and learn when to use each.
• Calibration best practices: Learn about the critical decisions that determine stress test quality – selecting appropriate historical periods that mirror anticipated market conditions, identifying which variables to shock and by what magnitude, and ensuring consistency with historical correlations to avoid contradictory results.
• AI-enhanced stress testing: Discover how an AI-based Copilot experience can be used to address some of the most challenging aspects of stress test design, including selecting appropriate historical periods.

Christoph and Rob will take you through practical workflows, focusing on scenario modeling of real macro events and using our multi-asset class risk management system, Axioma Risk, to arrive at possible outcomes.