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 time is now for buy-side firms to re-evaluate their approach to data management

Increased cost pressures, rising volumes of data, and the challenges of legacy systems are pushing buy-side firms to re-evaluate current approaches to data management. The aim is cost-effective, optimised data management that can provide flexibility and scalability, support various data types including ESG data, and ensure headroom for development in line with business objectives. Achieving...

BLOG

Challenges and Opportunities of Achieving a 360-Degree View of Risk

Achieving a 360-degree view of risk is a challenge, but can be achieved by taking a holistic approach to risk that embeds necessary data within a firm’s corporate structure and makes it accessible to all parts of the enterprise. Integrating data in this way enables all parts of the business to work in unison towards...

EVENT

Data Management Summit London

Now in its 13th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

RegTech Suppliers Guide 2020/2021

Welcome to the second edition of A-Team Group’s RegTech Suppliers Guide, an essential aid for financial institutions sourcing innovative solutions to improve their regulatory response, and a showcase for encumbent and new RegTech vendors with offerings designed to match market demand. Available free of charge and based on an industry-wide survey, the guide provides a...