Moving to an Integrated Stress Environment Ecosystem

REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
June 2, 2016
Industry Trends
EMEA, North America

Abstract

Increasingly, financial institutions are generating improved submission quality and synergies by taking a globally integrated approach to the scenario modeling of RRP, capital stress testing, and liquidity stress testing. While there are limits to the potential scope of this integration given inherent differences across these exercises, the need for a global strategic solution to scenario modeling is becoming clear as the regulatory requirements become more granular and as host supervisors demand local exercises for subsidiaries.

In this report, Moving to an Integrated Stress Environment Ecosystem, the authors lay out a Target State Vision of an integrated approach to stress exercises and a practical roadmap for financial institutions to achieve these efficiencies.

Authors:

James Warrick Alexander, Principal in the Americas Finance & Risk and Public Policy Practices
Deepak Kollali, Partner in the Americas Finance & Risk and Public Policy Practices
Eric Czervionke, Partner in the Corporate & Institutional Banking Practice
Paul Cantwell, Partner in the Americas Finance & Risk and Public Policy Practices

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

1. Bringing Together the Stress Environment Exercises

4

2. Target Vision for an Integrated Stress Environment Ecosystem

6

3. The Practical Feasibility of Achieving the Target State

8

4. The Roadmap Ahead

10

Sign in to download reports and access personalized information