Moody’s Analytics helps financial institutions develop a collaborative, auditable, repeatable, and transparent stress testing program to meet regulatory expectations, inform the bank’s risk appetite framework, and improve strategic business decisions.
Stress testing and capital planning are increasingly linked to many risk management processes that require coordination across risk, treasury, and financial planning and analysis functions.
Regulatory stress tests like CCAR, DFAST, ECB/EBA/SSM, and PRA have pushed banks toward the implementation of robust stress testing frameworks.
A successful stress testing program demands flawless integration and execution of numerous tasks, including program governance, process and results validation, documentation, data quality management, economic scenario development, expected loss modeling, forecasting, and reporting. Establishing an integrated approach to the use of stress testing results requires infrastructure, analytics, data, clear governance, and active participation of all stakeholders across divisions, business units and geographies.
Enhance your stress testing capabilities
Moody’s Analytics supports financial institutions in developing next-generation stress testing capabilities that enhance risk management. Our solutions support bank-wide strategies, enabling you to design and implement integrated stress testing frameworks that can be used across regulatory boundaries. They also support macroeconomic scenario design and implementation, customized to the unique strategies and risks of your portfolio. Enjoy improved coordination and feedback from model development that is integrated across asset classes and lines of business. Moody’s Analytics models can be relied upon as the industry standard to be used as challenger models.
Keep pace with evolving regulatory stress testing expectations
Moody’s Analytics stress testing suite supports governance and auditability, as well as model risk management, allowing firms to meet the growing demands of the regulatory stress testing process. Transparency with configurable business workflows enables monitoring of disparate business activities for coordinated regulatory stress testing submissions. Our software also facilitates stress testing model development, testing, validation, and implementation, resulting in an enhanced framework to monitor and govern the models used within the firm. Lastly, our centralized data warehouse cross-validates data sources within the firm to ensure data integrity and support daily business functions.
Juan M. Licari, PhD, is Chief International Economist with Moody's Analytics. As the Head of Economic and Credit Research in EMEA, APAC and Latin America, Juan and his team specialize in generating alternative macroeconomic forecasts and building econometric tools to model credit risk portfolios.
APA is a powerful risk management, stress testing, and capital allocation tool for analyzing the credit risk of auto loan portfolios and auto ABS collateral.
Moody's CreditCycle solution provides econometric consumer credit loss forecasting, benchmarking, and stress testing models.
This powerful risk management, stress testing, and capital allocation tool helps you analyze the credit risk of residential mortgage portfolios and RMBS collateral.
The CMM solution is the leading analytical tool for assessing default and recovery for commercial real estate (CRE) loans.
The CreditEdge tool is the premier model for managing the credit risk of your portfolio of listed firms and sovereigns, globally.
The Default & Recovery Database provides access to the most comprehensive default dataset in the market.
Moody's Analytics provides meaningfully expanded forecast scenarios based on projections provided by governing authorities for better stress testing.
GCorr Macro EL Calculator addresses regulatory requirements for stress testing and assists in strategic portfolio credit risk management.
Moody's Analytics offers comprehensive, integrated regulatory reporting for Basel I, II, and III, and EBA, CCAR, and DFAST stress testing.
The RiskFoundation platform is the cornerstone of many Moody’s Analytics enterprise risk solutions for financial institutions.
RiskFrontier software is an industry-leading credit portfolio risk management solution, trusted by financial institutions globally to improve business performance.
Scenario Analyzer is a robust and efficient software platform that centralizes and simplifies administration and execution of regulatory stress testing and capital planning.
Moody’s Analytics advisory and implementation teams work with organizations globally to strengthen and validate their stress testing frameworks.
Moody’s Analytics Stress Testing Suite helps firms implement collaborative, auditable, repeatable, and transparent stress testing processes.
Moody’s Analytics Portfolio Analyzer is a powerful stress testing and valuation tool for RMBS and ABS tranches.
The Regulatory Module helps banks and financial institutions meet their structured finance regulatory needs.
Assess, visualize, and manage your institution's systemic risks with this vital tool focused on network connectivity and spillover effects between institutions.