Monte Carlo Risk Model Development

We design and develop high quality Monte Carlo risk models in languages like python, C++ and VBA.

Monte Calo risk models are used across a range of industries including finance, telecommunications, electric, and oil.

The key concept behind the Monte Carlo method is to estimate probabilities or probability distributions through simulation. It’s strength is that it is a flexible method that works in all situations, in particular, when trying to solve the mathematics directly would be difficult. When dealing with distributions, there typically is no manageable formula to describe their many combinations. This situation frequently arises when trying to aggregate multiple risks which are not normally distributed. Thus, Monte Carlo methods are typically preferred for risk modelling.

In particular, Monte Carlo models are used extensively in the finance industry. Their applications include estimating value at risk, aggregating multiple loss distributions, assessing portfolio returns, pricing derivatives, and generating outcome distributions based on probabilistic stock behaviour. But risk is something that must be estimated and managed across a wide range of industries.

In addition to developing custom-build Monte Carlo risk models, we provide a wide range of cloud-based quant consulting services, and more generally, diverse mathematical modelling services.

Are you interested in developing a Monte Carlo model to estimate risk for your business? Our mathematicians will provide you with an industry-leading solution.