Surviving unexpected and unusual shocks is a top priority for any financial institution. That is why we have developed a solution to design realistic stress tests and a framework to address these unexpected issues. This stress test benefits from our continuous research efforts on the prediction of large market moves.
• Our stress tests help to make your organization more robust and less vulnerable to extreme market conditions. We test the structure and robustness of your portfolio against those shocks and help you locate the weak spots of your portfolio and monitor them.
• We work with you to avoid extreme losses arising from large unfavourable situations caused by abnormal economic or political conditions and adjust your risk capital to avoid insolvency in case of rare events. That allows you to assess the behaviour of new and intricate products that challenge your business plans, risk policies, etc.
• Our stress tests enable you to estimate the impact on your organization or portfolio of combinations of different kinds of risks, in particular market risk, credit and liquidity risks, but also operational risk and reputational risk. This enables you to have a full view of your risk profile, but also to test your portfolio diversification, notably by using stressed correlations.
• You gain a significant competitive advantage by generating forward-looking scenarios which do not necessarily reflect historical events
• Our service offer also contains a qualitative framework to guide the discussion on unfavourable developments like crises and abnormal market conditions that cannot be excluded and to actualize your risk strategy, risk capacities and capital allocation.