Economic stress testing enables you to understand the critical sensitivities of your portfolios to significant economic change and the related implications for provisioning, capital allocation and regulatory compliance. Basel II and III mandate key portfolio stress tests alongside prescriptions for safeguarding capital and reserves.
When developing methodologies for stress testing, it's vital to ensure programmes adequately address a range of economic scenarios for both regulatory and managerial purposes.
We help organisations like yours assess and develop scenarios by using a combination of skilled economists, analysts and credit risk consultants.
Rather than relying on generalised macro-economic assumptions, our extensive and detailed economic models allow alternative scenarios to be clearly defined, while taking into account the impact of regional economic and household factors. This in turn highlights the economic impact and probability of default to help safeguard against losses at an account level.
Analysis can include PRA anchor scenarios and severe client-developed stress scenarios.
Gain competitive and strategic advantage and meet CRD IV regulations using our adaptable and in depth AIRB approach.
Tools that help you to proactively segment your portfolio and manage your collections strategy enabling you to support your customers.
Our analytics experts can help you understand IFRS 9 accountancy standards and how it affects loss forecasting and work with you to build and deliver a comprehensive approach to the new standards.