A Finextra member 24 March, 2014, 10:23 0 likes

Yu makes some very valid points here with regards to best practice within stress testing.

A more holistic approach is indeed required if organizations are to achieve an enterprise-wide view of risk.

A robust structure, supported by a dedicated data management system, can help implement the workflows that will allow regulatory compliance to become the ‘norm’, even routine, for financial institutions. Currently stress testing is burdensome on banks as it requires investment of time, capital and resources. However by working with a specialist to automate some of the processes involved within stress testing, organizations can focus their time drawing insights from the information that is captured. The value lies not in the data, but in how it is put to use.

Furthermore, by breaking down organizational silos and with the right governance in place, they will be able to develop a data supply chain that gets the right data to the right place at the right time enabling them to concentrate on adopting a holistic and forward-looking view across the organization.