Stress Testing Platform

This module enables financial institution to develop a robust, auditable and transparent stress testing program to meet regulatory expectations, test risk appetite outcome and improve business decisions making.

You can construct and implement comprehensive organization-wide stress testing through balance sheet and risk simulation of all Basel II - Pillar I / Pillar II risks, and assessing simultaneous impact on measures such as capital, income & liquidity. Allows configuration and analysis covering multiple scenarios and sensitivities for existing portfolio including what if analysis.

Product Overview

  • Enterprise Stress Testing: Allows users to conduct one click organisation wide stress testing, scenario and what-if analysis covering multiple scenarios, events, conditions to assess impact on variety of risk indicators, benchmarks like profitability, capital adequacy, RWA, liquidity, provisions, IFRS 9 ECL, Liquidity ratios, gaps, prudential portfolio limits, concentrations, risk appetite thresholds, impact on NII, EVE etc.
  • Configuration of stress sensitivities and scenarios, multiple thresholds for stress testing - mild, medium, severe, and integration with Risk Appetite benchmarks.
  • Stress Testing framework closely interlinked to other risk modules such as pillar 1 capital, ALM for liquidity risk and interest rate, scorecards etc.

Key Features

  • Stress Testing Drivers: Configure multiple sensitivity elements & scenarios based on variety of portfolio dimensions and measures e.g. increased defaults, rating downgrades for portfolios, collateral value stress, adverse movement in interest rate, currency etc., liability instability and withdrawal, stress drawdowns on commitments, delayed repayments, changes in oil price, GDP growth, equity index etc.
  • Integrated impact of sensitivity & scenario analysis: Impact of various sensitivities and scenarios on one by one basis or an integrated basis wherein impact of multiple sensitivities and scenarios can be assessed on risk indicators simultaneously.
  • Regulatory and Management Stress Testing: Users can simultaneously conduct stress testing for regulatory and management scenarios under multiple thresholds – base case, mild, medium, sever to assess impact on key indicators under each. Ad-Hoc stress testing scenarios can also be configured suitably to address evet risk during crisis.
  • Statistical analysis like multi factor regression, PCA, credit index etc. to assess correlation and extent of impact of change in one or more macro economic variables on one or more risk indicators like default, RWA, liquidity ratios etc.
  • Comprehensive Dashboard and Reporting Studio: for management and regulatory reporting, impact analysis, drill down, history, trends etc. User defined stress testing dashboards, reporting etc.
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