Written by Risk.net
Moody's Analytics' Scenario Analyzer is a flexible application for bringing data, scenarios, models and reports into repeatable and auditable automated processes for stress testing and forecasting. The product covers a wide variety of use cases, including management stress tests and regulatory compliance across mandates, such as those of the European Banking Authority, Federal Reserve, Hong Kong Monetary Authority and UK Prudential Regulation Authority.
Scenario Analyzer centralises economic, risk and financial data into a single data mart, providing a 'single source of truth' for all stress-testing and forecasting operations, with full auditability of data. This data can be provided at various levels of granularity, checked for errors, enriched through business rules, and reviewed and adjusted by business users, as required. A centralised model catalogue enables users to deploy a spectrum of models, including Moody's Analytics' off-the-shelf offerings, as well as internally developed ones. Reporting capabilities are directly connected to the data and model outputs.
Scenario Analyzer enables users to configure the combinations of steps they require for a stress-testing process, spanning data operations, model calculations and user interactions. Recent performance improvements include enhanced parallel-processing capabilities, enabling the distribution of scenario calculations across a scalable number of servers, with in-memory calculations and optimised data management.
“One of the most comprehensive stress-testing products in the market.”
"Not only a solid stress-testing framework, but helpful data provision as well. Ahead of the market."
Andrew Bockelman, managing director, Moody's Analytics, says:
“The Moody's Analytics Stress Testing suite helps our clients automate sustainable stress-testing programmes that are comprehensive, transparent and repeatable. Our solution combines data, analytics and software to empower financial institutions to meet evolving regulatory stress-testing requirements while supporting their risk management, strategic planning and other core business activities.”