Stress Testing Within Market and Counter-Party Risk

Client Challenge

A senior management focus on stress testing required an understanding of what was possible in delivering a holistic stress testing vision encompassing five risk areas including; market, counterparty credit, interest rate, liquidity and pension risk. The client wanted a newly integrated platform with aligned and streamlined reporting. The existing infrastructure was not connected and in various states of maturity. Senior management wanted to know what it would take to deliver the vision and asked for a road map for development and implementation, together with costings, so that an informed decision could be taken on investment. 

What We Did

  • Worked with the business sponsor and IT to identify a high level operating model linking the five areas of risk
  • Created high level project plans for each risk area and identified resources required to deliver against milestones
  • Provided a cost plan with options in case of potential budget constraints
  • Gained approval from delivery stakeholders to support timelines and cost estimates

The Result

  • TORI and the project team delivered a plan outlining timescales and options for delivery against the vision to the Chief Operating Officer
  • Teams were briefed and ready to implement the agreed plan
  • Costings for the integrated platform, each risk area and the deployment options, were estimated within an acceptable level of variance
  • The Chief Operating Officer had the information needed to prioritise the work in line with the strategic objectives of the department