Unlimited
Model price curves, volatility, rates, and other factors to reflect real-world events.
Risk, Scenario analysis
Anticipate market shifts with confidence
Scenario Analysis lets you model potential future events and understand their impact on your portfolio, so you can simulate, analyze, and act with confidence.
Overview
Foresight is a necessity, not a luxury
In volatile energy and commodity markets, foresight is essential. Scenario Analysis lets you simulate a range of conditions, from price shocks to supply disruptions, to stress-test positions, uncover hidden risks, and make proactive decisions that safeguard profits. Define scenarios, run simulations across the portfolio, and analyze the impact through intuitive dashboards.
Capabilities
What it does
Define scenarios
Run simulations
Whole book
Apply scenarios to the entire portfolio or specific subsets in real time.
Analyze impact
Visualize
Understand financial implications and identify vulnerabilities through clear dashboards.
How it works
Define, simulate, analyze
A three-step loop from scenario definition through simulation to impact analysis, repeatable across any set of market conditions.
Benefits
Why it matters
Proactive mitigation
Before losses
Identify and address potential losses before they happen.
Informed decisions
Data, not intuition
Base trading and hedging on robust simulations.
Stress-tested
Extreme but plausible
Understand performance under extreme market conditions.
Optimized strategy
Maximize returns
Evaluate different strategies to maximize returns.
FAQ
Questions
What is scenario analysis?
A strategic tool that models potential future market events, price shocks, volatility changes, supply disruptions, and simulates their impact on your portfolio.
Can I model my own scenarios?
Yes. You can define an unlimited number of scenarios, adjusting price curves, volatility, rates, and other critical variables.
How is scenario analysis different from VaR?
VaR quantifies expected loss at a confidence level; scenario analysis explores specific, often extreme, what-if conditions. They complement each other, see VaR calculations.
Related
More in Risk
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A working walkthrough of Risk mapped to your commodities and workflows.