International Bank

FAST AND ROBUST SCENARIO EXPANSION

THE PROBLEM

  • Meaningful scenario design requires thousands of variables for internal stress testing
  • The board’s and management’s “what-if” questions required coming up with full-fledged scenarios, based on just one or two given variables

THE SOLUTION

  • Straterix’s Xpand and Core Variable Expansion (CVE) modules were used for expanding given core variables into full-fledged scenarios
  • SaaS solution and training delivered in less than 4 weeks
  • Model customization to satisfy bank-specific needs was completed within two months

THE BUSINESS CASE

  • Using external consulting services to address these questions was extremely costly
  • The quantitative process used internally, considering thousands of variables was extremely time consuming (weeks / months)

THE RESULTS

  • Addressing management and board questions, as well as expanding scenarios for stress testing is now done within hours if not minutes
  • Results are substantiated by automated back-tests to continuously validated the model results
  • The client achieved significant savings compared to using external consulting
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