Stress Testing

Stress Testing

Scenarios analysis and "what-if" modelling


Katalysys stress testing models and tools provide greater insight in to your business model and help you quantify key business risks. Stress testing should not be viewed as a compliance exercise. It should be used in conjunction with other risk management tools to identify measure, manage, mitigate and control key business uncertainties.


Business plan stress testing - helps you to evaluate a number of "what-if" scenarios and analyse the impact on Balance Sheet and Profit and Loss when preparing business plans.


Capital stress testing - helps you evaluate the impact on the firm's capital and capital adequacy due to adverse events with in the firm or in the wider market. The output from these stress tests is used in preparing the ICAAP.


Liquidity stress testing - helps you to evaluate the impact on the firm s liquidity due to adverse events. The results from these stress tests are used in preparing the ILAA/ILAS document.


Reverse stress testing - helps you to understand the impact of scenarios that would lead to the firm's business model becoming unviable.