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A forward-looking approach to credit risk management and capital planning.
How confident are you in your assessment of the potential impact of adverse and severely adverse economic conditions on your institution’s loan losses and capital? What if you could rely on a forward-looking risk assessment that provides immediate feedback regarding capital adequacy for current and ongoing credit risk?
With Credit Stress Testing, DCG brings "big bank" analytics to community banks and credit unions. Developed by our team of quantitative and strategic risk management experts, this stand-alone credit stress test service empowers users with practical, thorough documentation designed to exceed growing regulatory expectations.
“Institutions need to make stress-testing a priority before conditions begin to shift and it becomes too late to make the meaningful adjustments necessary to maintain a solid capital footing.”
Realtime Economic Forecast
Gain an understanding of how different economic scenarios could potentially impact credit quality within various segments of your loan portfolio. With quarterly forecasts from expert economists, your team will receive continuously updated, forward-looking loss projections.
Statistically Robust Modeling
An independent forward-looking approach allows users to leverage advanced statistical modeling. Clients are enabled to quantitatively defend the relationship between domestic macro-economic factors and net charge off rates for their institution (including both regional and national peers).
Users receive “examiner-friendly” documentation that is thorough and designed to exceed growing regulatory expectations.
Executive Support & Ongoing Guidance
DCG's team of credit experts provides executive-level education to client institution boards and C-suites. The team helps integrate results with other risk management models including liquidity, capital planning, and allowance calculations.
How We Help Clients
About DCG Credit Stress Testing
The solution provides:
A clear and concise executive summary that highlights results and key implications for capital ratios.
Individual loan portfolio analysis that includes detailed institution-specific, regional, and national peer group expected loss projections for baseline, adverse, and severely adverse economic scenarios.
Attribution analysis that indicates the relative impact various economic factors have on each portfolio’s loss estimates.
“Examiner-friendly” documentation that provides key stakeholders a clear explanation of the analyses, statistical methods employed, and key assumptions.
An executive- and Board-level presentation to ensure all of the analyses, results, and strategic implications are fully understood.
Credit Stress Testing
Forward-looking approach delivers easy-to-access insight
DCG Credit Stress Testing provides immediate feedback regarding capital adequacy.
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