Macroeconomic Scenarios Service

Fathom’s Macroeconomic Scenarios Service is designed to help banks and other financial institutions operating under the IFRS 9 and CECL accounting standards to meet their regulatory obligations, and to manage risks by better understanding their exposure to different economic conditions. The Fathom service provides six short- and long-term scenarios each quarter, covering the key macroeconomic variables required for expected credit loss (ECL) calculations.

This service has two levels: Essential, which offers everything that many financial institutions will need to calculate loan loss provisions and comply with IFRS 9 and CECL regulations, and Enhanced, which is a bespoke service offering greater flexibility with the key package features, as well as additional country and variable coverage. The differences between the two services are explained below.

To find out more about how our scenarios service can help you with your regulatory compliance and risk management, request a meeting below.

Essential service

  • Six probability-weighted scenarios, updated each quarter
  • Scenarios and their probabilities decided by Fathom’s Forecast Committee
  • Calculations supported by Fathom’s fully integrated suite of macro models and central forecast
  • Data output provided in Excel and CSV
  • Supporting written documentation, including scenario narratives; key driver explanations; justification for probability weights; other evidence
  • Coverage of core countries: US, euro area, UK
  • Eight core variables covered for each of these countries, and two global variables

Enhanced service

Everything included under the Essential service, plus:

  • Bespoke scenarios chosen by the client
  • Additional country coverage, as needed
  • Additional variable selection, as needed
  • Flexible delivery schedules aligned with internal reporting timetables
  • Fathom on call so you can speak to our Forecast Committee members
  • Updated scenarios when major events demand it, even if outside the normal quarterly round
  • Scenarios and data are accessible through a Tableau dashboard

Why Fathom?

Fathom has been providing rigorous and independent macroeconomic analysis and forecasts to the private sector and to various government agencies and departments of the world’s major economies for more than two decades.

  • Fathom stands out among other economic providers by having a fully integrated global macroeconomic model. GESAM (Fathom’s Global Economic and Strategic Allocation Model) covers more than 80% of global GDP. It is grounded in theory, estimated empirically and incorporates data that stretch back 150 years. GESAM allows us to model long-term trends with confidence.
  • Our central forecast and other scenarios are also supported by analyst-enhanced, short-term nowcasts, which ensures that scenarios always reflect the most up-to-date information.
  • We have built up over many years a suite of datasets which can identify emerging financial risks to the global economy and cross-country economic and financial linkages.

Taken together, these powerful proprietary tools allow us to offer a world-class macroeconomic scenarios service, head-and-shoulders above the competition. We can offer more realistic economic scenarios, assign more accurate probabilities and produce more joined up and forward-looking forecasts. We can clearly identify and explain the drivers of each scenario, and the assumptions that underpin them, giving clients and regulators confidence in the process.

Our Enhanced service goes further by designing scenarios around your organisation’s specific needs. We will deliver your scenarios when and how you need them with flexibility to reflect big changes as and when they occur even if that happens in between the usual quarterly cycle. Fathom is independent, with no hidden agendas, and we call things how we see it – which is why private sector and government clients have come to us for trusted and ongoing advice for over 20 years.

Case study

Macroeconomic modelling and scenario analysis
Macroeconomic modelling and scenario analysis
The investment arm of a major US bank outsources the modelling of its global macroeconomic scenarios to Fathom

Meet the team

Brian oversees Fathom’s economic forecasting and scenario-building services. He has extensive experience working with clients from the public and private sectors and running large consultancy projects to ensure delivery of world-class products and services. Brian also leads Fathom’s energy and climate-related work, and has substantial expertise in building and managing large datasets, models and tools.

Erik is responsible for designing and implementing the company’s strategy. This means guiding its macro research, and winning and leading major projects in macro, finance and political analysis, and ensuring those projects are completed to the highest possible standard. Early in his career, he worked at the Bank of England where he ran the Bank’s UK macroeconomic model and coordinated its international forecast.

Andrew started his career at the Bank of England and joined Fathom over 20 years ago. Since then he has carried out research and consultancy relating to a wide range of issues confronting the global economy and its financial markets. He developed and continues to maintain Fathom’s proprietary FIRM-DB model, which is used when advising local authorities on their defined-benefit pension schemes.

Joanna plays a central role in overseeing client relationships and the delivery of bespoke consultancy projects. Since joining Fathom over ten years ago, Joanna has spearheaded projects for public-sector clients and has helped position Fathom as a key provider of China-related economic analysis and policy insight. Her work spans global investment, trade, economic interdependence and geopolitical risk, with a particular emphasis on China’s role in the world economy.

Dimos specialises in quantitative market research across equities and global asset classes, with a focus on econometric modelling, regime analysis and cross-asset allocation. He manages the development of Fathom’s dynamic investment barometer, FARM, which identifies macro-financial regimes in real time by matching current conditions with close historical analogues, generating forward-looking expectations for asset returns. His work has appeared in peer-reviewed finance and accounting journals.

Shamik was a co-founder of Fathom, and rejoined as Special Adviser in 2025. He plays a key part in shaping Fathom’s bespoke consultancy and modelling work through the development of our proprietary data, models, and tools. He was previously Global Chief Economist at BNY Mellon Asset Management and Chief Economist at the UK Foreign and Commonwealth Office, and led the Bank of England’s Monetary Policy Division in the 1990s.

Get in touch

For more information about our Macroeconomic Scenarios Service or to discuss your needs and how we can help, please fill out the form below.

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