In today’s complex and volatile operating environment, executives need more advanced forecasting tools that can assess the impact of alternate economic assumptions on a business plan or investment strategy.
That is why the world’s top organisations use Oxford Economics’ global economic model for scenario analysis and stress testing. Ideal for conducting rigorous “what-if” analysis, the model allows us to look at the implications of key economic risks and policy changes. By linking 46 country models through trade and financial flows, our model provides a unique open-architecture framework for assessing the cascading impacts of alternative macroeconomic assumptions, even those just concentrated in key regions or industries.
Scenario analysis and stress tests can be applied to a wide range of business and regulatory activities:
- Test the robustness of a business plan or investment strategy to external market forces
- Consider the risks of entering a new country market or sector
- Satisfy the requirements of bank regulators in conducting stress tests
- Perform due diligence to demonstrate the resilience and preparedness of your organisation’s risk management approach
- Inform strategic thinking, such as demonstrating how sales performance will vary under different economic conditions
- Support government departments in budget forecasting and economic policy decisions