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.
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.
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.
Advises U.S. and Canadian financial institutions on risk and finance integration, CCAR/DFAST stress testing, IFRS9 and CECL credit loss reserving, and credit risk practices.
Dr. Douglas W. Dwyer
Douglas W. Dwyer leads Corporate Credit Research in Predictive Analytics. This group produces credit risk metrics of small businesses, medium sized enterprises, large corporations, financial institutions, and sovereigns worldwide. The group’s models are used by banks, asset managers, insurance companies, accounting firms and corporations to measure name specific credit risk for a wide variety of purposes. We measure credit risk using information drawn from financial statements, regulatory filings, security prices, derivative contracts, behavioral and payment information. For each asset class, the methodology is developed based on the available information for each obligor. <br><br> Current projects include developing a climate adjusted probability of default and incorporating ESG factors into credit analytics. We also are developing an approach to produces comparable PDs across asset classes that opportunistically uses whatever information is available. <br><br> Prior to working at Moody’s Analytics, Dr. Dwyer was a Principal at William M. Mercer, Inc., in their Human Capital Strategy practice. Dr. Dwyer earned a Ph.D. in Economics at Columbia University and a B.A. in Economics from Oberlin College.
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Auto Portfolio Analyzer
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.
Mortgage Portfolio Analyzer
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.
Default & Recovery Database
The Default & Recovery Database provides access to the most comprehensive default dataset in the market.
Economic Forecast Scenarios: Regulatory
Moody's Analytics provides meaningfully expanded forecast scenarios based on projections provided by governing authorities for better stress testing.
GCorr™ Macro EL Calculator
GCorr Macro EL Calculator addresses regulatory requirements for stress testing and assists in strategic portfolio credit risk management.
Regulatory Reporting Module
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.
Stress Testing Services
Moody’s Analytics advisory and implementation teams work with organizations globally to strengthen and validate their stress testing frameworks.
Stress Testing Suite
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 risk management and valuation tool for consumer lending portfolios as well as RMBS and ABS tranches.
Structured Finance Portal Regulatory Module
The Regulatory Module helps banks and financial institutions meet their structured finance regulatory needs.
Systemic Risk Monitor
Assess, visualize, and manage your institution's systemic risks with this vital tool focused on network connectivity and spillover effects between institutions.