Global Stress Testing Programme
Our client, a global financial institution, asked us to support the re-engineering of their group-wide capital stress testing capabilities.
Our client realised that the regionally devolved approach to group-wide stress testing that they had historically relied on would not work in the new regulatory landscape, or deliver the best-in–class capability that senior management demanded. A stress testing review was underway when the PRA launched their firm-wide Data Submission Framework initiative, outlining prescriptive new requirements of UK regulated banks, requiring the project to be re-engineered.
Working with senior stakeholders within Group Risk and Group Finance, our team reviewed regional stress testing operating models before designing a single framework operating model for a new Global Stress Testing function. Diving into the detail of the design, our team found themselves defining role profiles for over 100 newly created global positions.
We liaised on behalf of our client with the PRA and STDF and defined the IT architecture that the bank needed to deploy in order to deliver STDF data submissions. We also planned and coordinated several stress testing submissions including the group-wide EBA and Bank of England exercises, plus quarterly STDF submissions.
Our team played a leading role in defining a unique, new operating model which enables our client to strategically manage the changing demands on their stress testing capability and meet immediate regulatory deadlines.