Summary

CRISIL’s RISE ecosystem partnered with Global Credit Data Consortium to host a virtual roundtable on Stress Testing.  Current issues in Stress Testing were discussed and RISE and Global Credit Data Consortium introduced their joint advisory study: Strategic Comparison and Advisory Narrative (SCAN). The session was attended by 70+ senior risk professionals from over 30 global banks, including 15 global systemically important banks (G-SIBs).

RISE discussed key global trends in Stress Testing and how banks can benefit from leveraging the opportunity to collaborate at a granular level. Global Credit Data Consortium discussed how their loan level historical loss and work-out data, together with internal obligor ratings, PD and observed default data, can provide related insights for banks to use as part of Stress Testing.

Following this, RISE introduced its value proposition for industry collaboration: SCAN on Stress Testing. SCAN is a data-driven industry advisory study, which allows banks to compare themselves against their peers on best-in-class industry practices, operating models and cost structures. To know more click here.

During the event, RISE ran two live polling questions to get insights on industry thinking around Stress Testing. From the results below, it is clear that many banks are in the process of re-evaluating key Stress Testing activities and how to carry them out efficiently. This reinforces our view that banks can benefit from industry collaboration, which can be facilitated through Stress Testing SCAN.

Banks attendance by region: