Enteprise Risk Solutions
The ICAAP and the stress tests under the Basel framework are useful for understanding the risk profiles of banks from a historical perspective. US Regulators want to conduct forward-looking stress tests. FRB implemented SCAP (Supervisory Capital Assessment Program) stress test to meet the forward-looking test scenarios.
Dodd-Frank Act (July 2010) requires federal Agencies are responsible for conducting stress tests annually to determine whether banks have the capital needed to absorb losses in baseline, adverse and severely adverse economic conditions. Following test scenarios are required under
- CCAR (Comprehensive Capital Analysis and Review) – requires banks (>$50B) to outline their capital plans over a nine quarter horizon under three scenarios (baseline, adverse macroeconomic scenario and severely adverse macroeconomic scenario).
- Annual Stress Tests – requires banks (>$10B and < $50B) conduct annual stress test NPR based on economic scenarios.
- Large Bank Testing – requires banks (>$10B) to conduct a portfolio-level stress test and also involves conducting a reverse stress test.
Our unified data platform helps improve efficiency and accommodate new or changing regulations with full transparency to the underlying data inputs and existing infrastructure. Our solution is incrementally deploy-able for each business unit using central repository. We support regulatory requirements like BCBS239, FRY14, FRY16, FRY9C etc.
The Sarbanes-Oxley Act (2002) – SOX is mandatory. All organizations, large and small, must comply. Out of eleven titles, sections 302, 401, 404, 409, 802 and 906 are critical for meeting compliance requirements. Our unified data platform provides necessary elements needed for control and governance required to meet the SOX compliance.