As stress testing around the world becomes increasingly intricate, more and more is being asked of firms to have the systems in place to monitor activities, gather data and apply models to analyze it.
Any change in the market would impact the customer behavior, customer credit rating, Income and expense, ECL.
The volatile financial environment coupled with unprecedented regulatory pressures is resulting in the urgent need for an enterprise-wide solution to cater to a bank’s stress testing requirements.
Our team helps with:
OneSumX® Risk solutions enables scenarios to be applied across multiple risk categories such as trading book and banking book.
Rapidly execute and build stress scenario by utilizing library of shocks, common data and common business definition through a graphical user interface.
Create unlimited number of stress scenarios like macro-economic, idiosyncratic and categorical variables as recommended by regulators, internal bank’s risk management policy.
Transparent and auditable stress testing process that helps reviewers and regulators to understand organization specific risks and their mitigation plan.
Carry out stochastic as well as deterministic stress tests as well as a unique ability to combine both deterministic and stochastic stress in one definition.
Study the Impact due to assumption on Prepayments, Replication (Base and Volatile portions separately), Credit line drawings, varying haircuts on static as well as projected balance sheet.
Capture the different levels of severity of a risk event. Scenarios of mild and severe recession can be defined by specifying shocks of different severity to a single set of variables.
Assess the impact on projected balance sheet due to stress scenarios / assumptions due to expected volume changes and characteristics of new contracts, Reinvestment strategy.
