---
title: Modelling & quants
date: 2023-04-12T15:54:43Z
modified: 2023-06-21T10:50:19Z
permalink: "https://riscura.com/what-we-do/modelling-quants/"
type: service
status: publish
excerpt: Asset-liability modelling establishes allocation parameters based on your unique liabilities, objectives, and goals. Our proprietary service utilises mathematical modelling to mitigate risk and cost, drawing from leading academic works and physics-inspired principles.
wpid: 793
service_header_title: ANALYSIS AND UNDERSTANDING YOUR INVESTMENTS
service_header_description: "Our analytical services are designed to help you build a robust understanding of your investments through our world-class research, accurate interpretation of information and specialist analysis of investment data at every level. It is about providing the tools you need to make informed investment decisions that are empowering for your business.\\n\\nOur starting point is defining and understanding your needs first, and then allowing this to inform not only the data we gather, but also how we present it. This allows us to show the complex interplay of data sets in a way that is clear, relevant and intuitive."
timestamp: 2023-06-21T10:50:19Z
tags: []
---

## Modelling and Quants

What we do

- Asset-Liability Modelling

Asset-liability modelling is a vital foundation for any investment strategy dealing with specific liabilities objectives, needs or goals. It is the tool we use to establish asset allocation parameters in relation to liabilities, objectives, needs or goals. Based on both our own development and leading academic works, our proprietary asset liability modelling service owes as much to physics as actuarial science, enabling our team of highly skilled specialists to use mathematical modelling and value analyses to avoid unnecessary risk and cost.

- Asset Allocation Optimisation

Strategic asset allocation is the principal driver behind any successful investment strategy, and the first step in optimally managing capital in line with your liabilities objectives, needs or goals. Our asset allocation optimisation service is a key component in our asset-liability modelling to help clients meet their financial objectives and maximise performance over the long term. We present a clear and straightforward choice of asset allocations that yield the highest returns for each level of risk relative to your specific objective.
How we do it

## 01

##### Economic Scenario Generation (ESG)

Employing proven mathematical functions to forecast the evolvement of assets in relation to liabilities, objectives, needs or goals in a future economic environment, enabling us to recommend a strategic asset allocation that will deliver on strategic objectives. This method surpasses the traditional, deterministic approach, with a more accurate mathematical representation of real-life dynamics and uncertainty.

## 02

##### Capital Market Assumptions

Looking at the expected returns and covariances of a broad range of asset classes that we estimate to represent the long-term risk/return forecasts. We use these values to score portfolio risk, assist in asset-liability modelling, asset allocation optimisation and economic scenario generation.

## 03

##### Testing and Validation

Our models are continuously tested and adjusted to ensure their accuracy and relevance in the face of changing variables. We apply sensitivity analysis, a financial model that determines how target variables are affected based on changes in input variables to predict the outcome of a decision. These models undergo rigorous Model Validation, which seeks verification of model accuracy and performance, including a review of implementations and any other assumption.