Data: The Tail That Wags the Stress Test
Report Summary
Data: The Tail That Wags the Stress Test
Compliance is becoming increasingly difficult for bank compliance departments as regulators review banks' ability to manage intraday liquidity, analyze risk at various levels, and maintain adequate capital.
Boston, November 20, 2013 – Compliance is becoming increasingly difficult for bank compliance departments as regulators review banks' ability to manage intraday liquidity, analyze risk at various levels, and maintain adequate capital under a variety of projection scenarios. But managing data can be as difficult as analyzing it and projecting its outcomes. Worse, banks that struggle with risk-related data challenges during a stress test can be viewed as lacking the ability to monitor their risk, leading to even higher capital requirements. How can banks increase the quality of their data stores for risk and projections?
Based on Aite Group's Q2 2013 comprehensive study of stress testing, this report by senior analyst David O'Connell analyzes the data-specific challenges banks grapple with when performing stress tests, discusses the benefits of automating data management, and provides a representative list of leading vendors providing such capabilities. It is the third in a series of three reports on stress tests--find the first two here and here.
This 16-page Impact Note contains one figure and five tables. Clients of Aite Group's Wholesale Banking or Retail Banking services can download the report.