Stress testing

Market events continue to demonstrate the importance of linking the risks from the external environment in which a firm operates to its strategic planning decisions and risk management processes. The consequences to a firm of not doing this can be swift and severe.

Conducting stress tests across portfolios is a complex and resource intensive process, which is often hampered by data quality.

Our team draws together expertise in economics, credit and financial risk management to help our clients to embed scenario and stress testing into the management process. We provide:

• Bespoke macroeconomic scenarios that are ‘severe but plausible’ and relevant to your business
• Models that relate the macroeconomic scenarios to measures of assets’ quality such as defaults and arrears
• Benchmarking against our own models and other companies