Finalyse - Composing Solutions for Finance

Stress Testing

Finalyse - Composing solutions for Finance

The requirements for stress testing are more and more stringent, leading to gaps in models and methodologies and needs for additional calculation and reporting capabilities. Through our service, clients obtain a sound stress testing infrastructure with state-of-the-art tools based on industries’ best practices. Finalyse develops advanced statistical stress testing models which are usually complemented with business expertise leading to broad acceptance within the business.

Using our stress testing models, clients are able to assess the risks of extreme but plausible events. Compliance with regulatory requirements like Basel Pillar II and EU-wide stress test requirements is also taken care of. Stress test models can be implemented in various software applications like Excel, VBA, SAS or be part of in-house developments.

On top of model development, Finalyse makes proposals and recommendations for the set-up of stress testing frameworks together with functional requirements for a further implementation, leading to a comprehensive regulatory compliant environment of stress testing policies and tools.

What benefits can our Stress Testing Service bring you?

  • Identification of model enhancement possibilities
  • Identification of portfolio dynamics and portfolio weaknesses in extreme but plausible events
  • Scenario design 
  • Identification of concealed correlations in portfolio 
  • Supporting the Internal Capital Adequacy Assessment Process (including Capital Planning) 
  • Meeting regulatory requirements 
  • Sound governance and processes around stress testing 
  • Ready-made material for model validation and business users

If you are interested in these services, do not hesitate to contact Silvio Santarossa for more information.