Metavante Risk & Compliance Solutions
Credit Risk Management
Turn stress testing into good banking sense.
Effective credit risk management requires a methodical approach, relying heavily on strong analytics to assess your lending exposures. Unfortunately, many institutions do not have the data mining capabilities to collect critical loan information or the analytical expertise to interpret the results.
Credit risk stress testing
In the wake of the recent credit crunch, stress testing your loan portfolio is now being recognized as a key component to managing your credit risk stress testing forces financial institutions to step back from daily operational and loan production activities and explore portfolio scenarios that could result in serious financial impacts if they were to materialize.
With over 50 years of experience in financial data management, our credit risk consultants develop a process to help you collect loan portfolio data and analyze metrics. We then interpret this data and help you understand how your loans should perform in different economic cycles, all while assessing the overall health of your portfolio.
Metavante's method for stress testing
- Engage senior management from risk management and lending
- Rigorously pursue the initial design
- Be consistent in the approach to data collection
- Implement the model gradually
- Test the model assumptions on a regular basis
- Document the stress test to identify key risk indicators
- Document the stress test for future audits
THOUGHT LEADERSHIP
Risk Management Blog
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