stress testing

Catalyst's Stephen Loosely questions if clearers and clearing houses are going far enough with stress testing and suggests a wider testing of assets and liabilities is crucial to effect risk management.

Clearing houses stress test the cleared liabilities of their members to protect themselves against extreme losses in a default. Regulations direct what stress testing should provide for. On the surface, it looks like we’re all safe. But we’re missing something big.

The Basel Committee on Banking Supervision has today published a peer review of the implementation by national supervisory authorities of the Basel Committee's principles for sound stress testing practices and supervision.

Algorithmics’ response says transition from silos to enterprise view of risk will be challenging

Fitch Solutions says CDS market uncertainty surrounding the results of upcoming European bank stress tests has led to increased CDS liquidity during the last month for banks in Portugal, Italy, Greece and Spain. 

“Restoring Credibility – The Importance of Stress Testing” Validates Industry Demand for QuIC Stress Definition Language

Axiom Software Laboratories Inc, leading global provider of Regulatory Reporting and Risk Management solutions has announced today at the Axiom user group meeting the launch of its Liquidity management and Stress Testing module based on the proven regulatory reporting and data management platform, ControllerView® and IntegrationCenter™. In addition to regulatory and internal reporting, Axiom now equips financial institutions with stress-testing capacity to identify and manage quickly and efficiently relevant risks across the organisation.

New Research from TowerGroup

Rodney Nelsestuen, Bob McDowall
Financial Strategies & IT Investments

The Financial Services Authority (FSA) has strengthened its stress testing regime by requiring firms to improve their stress testing capability, enhance their capital planning stress testing and by introducing a reverse stress testing requirement for firms.

The FSA’s integrated approach to stress testing consists of three main elements:

Risk Integrated, a consultancy and software firm specializing in risk measurement and reporting, today launched its Generalized Finance System (GFS), a web-based risk measurement and reporting platform. The system helps risk and portfolio managers calculate and report on capital and stress tests for mixed asset types, including retail loans, retail mortgages, corporate loans, commercial real estate, equities and asset backed securities by enabling risk analysts to immediately convert unwieldy spreadsheet analyses in a robust enterprise-level system.