2023 adverse scenario is the most severe used in the EU wide stress up to now
The adverse scenario assumes a hypothetical worsening of geopolitical tensions leading to a severe decline in GDP with persistent inflation and high interest rates. The adverse scenario is designed to ensure a significant severity of various macro-economic and financial shocks across all EU countries and, for the first time, depicts a breakdown of the shocks (on real gross value added) by economic sectors.
End-to-End Support: Provide services across all three Lines of Defense (Stress testing model development, Model validation & assurance and Internal Audit support). Design strategic approaches to Stress testing model development and integration within bank infrastructure.
Project Management: Introduce a robust project management framework that is critical in order to meet timelines in a challenging development environment.
Data Solutions: Provide integrated data solution for data preparation including data analytics, remediation and integration.
Stress test: Build best-in-class sensitivity analysis and stress testing models across different risk types respecting best industry practices and latest regulatory expectations.
Stakeholder Support: Engage all relevant stakeholders into the model build process at all relevant stages and provide documentation support. Support submission of stress testing results to regulators, supervisors and key bank stakeholders.