Several cycles in to the current regulatory regime, banks and financial institutions seek to improve efficiencies, save costs and reduce complexity in regulatory stress testing. At the same time, banks are seeking to leverage investment in stress testing capabilities for business forecasting, capital management, and now, CECL.
Oakleaf Group works with stress test owners to reduce inefficiencies and increase automation in stress testing. We are expert at efficient integration of models, data, assumptions and scenarios to create controlled execution frameworks that move the incremental cost of each “run” closer and closer to zero – enabling clients to better analyze results, attribute changes in outputs to changes in inputs, and extract business value from stress test investment.
Our consultants have extensive Comprehensive Capital Analysis and Review (CCAR), Dodd Frank and Basel experience, covering from small regional banks to systemically important banks.
Oakleaf provides assistance with all areas of Stress Testing, including:
- Process Improvement and Increased Efficiency in Execution
- Process Automation of Stress Test component steps
- Effective Challenge and Benchmarking
- Scenario design and planning
- Model production readiness
- Model development standardization
- Process control design
- Controlled incorporation of Overlays and Assumptions
- Adopting/adjusting stress testing for CECL requirements
- Credit strategic value; aligning stress testing & strategic planning
- Leveraging stress testing into FP&A, capital planning, and credit pricing