Simple Governance Solutions for Complex Governance Challenges

PRIMED for Financial Stress Testing


Financial Stress Testing Processes are mandatory obligations set by the regulators of the banking industry. In the US the stress testing process is known as CCAR, but there are equivalents throughout the world. The Bank of England, the European Union, China and Singapore all set their own pre-requirements to manage and monitor the financial capacity of a bank to withstand changes in global economic circumstance.

These processes are critical to ensure the optimisation of capital across the entire bank. Involving multiple stakeholders with thousands of tasks to perform within it, stress testing is a complex process and has substantial financial, reputational and operational risks associated with it.

When selecting an effective platform for the process there are three fundamental aspects to consider:

  1. Timing and Critical Path: the process is time critical with information required within a hard deadline every quarter.

  2. Control: because of the significant risk associated with failure of the task and the fact that the process itself must meet with the agreed requirements of the regulator, it is not only imperative to ensure that appropriate controls exist, but also that they can be clearly evidenced.

  3. Efficiency and Continuous Improvement: Efficiency as it relates to Financial Stress Testing is not only associated with the cost of running the process and the speed of execution, but also to its simplification through the shortening of the lines of communication and the reduction in the margin for error.

PRIMED features:

  • Transparency and Stakeholder Integration: provides stakeholders with the ability to maintain a view of the status of the process as it relates to them and update directly as tasks are completed or escalation is required. It can be integrated into a company portal and logged onto simply within the single sign off process.

  • Automation: alerts stakeholders as tasks become ready to complete, as escalations are raised or milestones are met through mail, text or via the system.

  • Real-time Risk Management: provides the ability for business users and stakeholders to create and view risks against any step or control in the process by type or severity.

  • Dependency Tracking: allows the dependency between different tasks, resources, regulatory pre- requirements and other elements to be tracked and managed.

  • Change Control: provides an auditable platform for change requests and sign of for control and regulatory transparency.

  • Change Impact Analysis: enables the different process scenarios to be viewed and assessed in the context of their dependency to other tasks as part of the change control process.

PRIMED benefits:

  • Reduces cost: by removing a layer of administration and automating communication of process changes.

  • Accelerates the process: by shortening lines of communication and through the delivery of automation.

  • Enables greater control: with improved Risk Management, integrated Process Impact Analysis, Change Control and greater regulatory transparency.

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