About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Moody’s Analytics Releases 2011 Banking Industry Survey on Stress Testing

Subscribe to our newsletter

Banks are increasingly integrating stress testing into their risk management and business planning processes, although most still find deploying stress testing best practices throughout all their businesses very challenging, according to a survey conducted by Moody’s Analytics, a leader in enterprise risk management solutions.

Published today, Moody’s Analytics’ “2011 Banking Industry Survey on Stress Testing” provides an overview of current best practices and remaining challenges in the European banking industry. The survey was conducted in the second quarter of 2011 and included more than 40 in-depth, one-on-one interviews with senior practitioners with risk and finance functions at banks of all sizes in Europe.

Although stress testing has grown in importance, the survey reveals that many banks are struggling to go beyond just meeting the regulatory requirements and fully leverage stress testing for business purposes. In fact, only a small percentage of the respondents were able to leverage stress testing to actively drive management actions.

“Financial institutions who have integrated stress testing are more confident in their decision process, and find it easier to comply with regulations and to be more transparent with the market – a great advantage in an environment characterised by lack of confidence,” says Christian Thun, senior director, Moody’s Analytics.

“For many banks, execution challenges seem to lie in the lack of process automation, granular data management, and scenario-impact modelling skills,” Thun adds.

The report reveals that the lack of integration at both system and function levels – for example, between finance and risk – often hinders the formation and implementation of bank-wide stress testing. The survey concludes that by investing in efficient processes and systems, banks can turn what is still often perceived as a painful exercise into a highly effective tool for business planning and risk management.

To view the survey and for more information, please visit moodysanalytics.com/stresstest.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The roles of cloud and managed services in optimising enterprise data management

Cloud and managed services go hand-in-hand when it comes to modern enterprise data management (EDM), but how can the best solutions for the business be selected and implemented to ensure optimal data management based on accurate, consistent, and high-quality data, and delivering improved efficiency, better decisions and competitive advantage? This webinar will answer these questions,...

BLOG

AI Integration in Capital Markets: Current Trends and Future Directions

Although artificial intelligence (AI) and machine learning (ML) have been widely used in the capital markets sector since the 2000s, the emergence of generative AI (GenAI) within the last 18 months has spurred a significant increase in investment in AI tools and technologies. This trend is set to continue as AI is deployed and utilised...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Enterprise Data Management, 2009 Edition

This year has truly been a year of change for the data management community. Regulators and industry participants alike have been keenly focused on the importance of data with regards to compliance and risk management considerations. The UK Financial Services Authority’s fining of Barclays for transaction reporting failures as a result of inconsistent underlying reference...