Stress Testing for Banks
Scenario analysis to report the capital exposure for Banks & Financial Institutions
Enterprise stress testing is a type of simulation that is used to evaluate the resilience of a bank or financial organization in the face of financial or operational stress. This type of testing typically involves creating a hypothetical scenario, e.g. significant decline in market conditions or a major change in business operations, and then using financial models and other tools to build, orchestrate and evaluate how the financial organization would respond to that scenario. The goal of enterprise stress testing is to identify potential vulnerabilities and areas for improvement within the financial organization, so that appropriate steps can be taken to address them and enhance the organization's overall resilience.
Current Scenario: As-is Script - How do different teams get to the scenario? 4-5 teams run the scenario based on the inputA person on one team doesn’t have visibility to results from other teams.
Banks have different vendors for multiple functional areas. Any stress test should be run across multiple areas. Currently the process is manual. If a stess test needs to be run on a 3rd party solution provider, it has to be manually downloaded and uploaded to the 3rd party staging area. Given it’s manual, it takes lots of time and effort to achieve this.
Future Scenario: To-be Script - JJ
