Moving to an Integrated Stress Environment Ecosystem
REPORT PREVIOUSLY PUBLISHED BY OLIVER WYMAN
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