Social Sharing
Extended Viewer
Fabric’s Approach to Scenarios
Dec 15, 2023
This paper originally appeared on Fabricrisk.com. MSCI purchased Fabric — now known as MSCI Fabric — in December 2023.
Scenarios are a way of positing the material risks that come from the combined effect of events and market vulnerability that can propagate across the markets. At its core, a scenario is not a number, it is a narrative. Like a thriller, it is a story with twists and turns. A catalyst gets the action going. The current market environment is its setting, perhaps investor exuberance and leverage, tight money and credit constraints, or high concentration and momentum. The core of understanding risk, the task of building scenarios, is not mechanical and is not trivial. It is alive as a narrative.
Download report
Research authors
- Rick Bookstaber, Managing Director, MSCI Research
- Dhruv Sharma, Executive Director, MSCI Wealth Product
Related content
Equity Factor Models
The next generation Barra factor models are here — where deep research, comprehensive data and computational power convene to solve modern investing’s most pressing challenges.
Learn moreManaging Material Risk
Risk management for individuals and other asset owners differs from that of financial institutions. It’s time for a fresh mindset and new tools for these market participants. The authors propose measuring material risk through agent-based models.
Read the reportMSCI Fabric
MSCI Fabric is a wealth technology platform specializing in portfolio design, customization and analytics for wealth managers and advisors.
Explore more