Oracle Financial Services today introduced Oracle Financial Services Enterprise Stress Testing & Capital Planning Analytics, an enterprise-wide reporting tool that helps financial institutions assess the impact of adverse scenarios on their risk and performance, improve capital management and strategic planning, while efficiently facilitating compliance with emerging regulatory requirements around stress testing.
Oracle Financial Services Enterprise Stress Testing & Capital Planning Analytics provides out-of-the-box regulatory templates designed to address stress testing requirements mandated by the US Federal Reserve as part of the Dodd-Frank regulations.
The application also supports a comprehensive set of pre-built dashboards and reports designed to support compliance with the reporting requirements of various regional regulations and governing bodies around enterprise stress testing, including:
• Basel III Pillar I
• Internal Capital Adequacy Assessment Process (ICAAP)
• U.S. Comprehensive Capital Analysis and Review (CCAR)
Financial institutions can now manage capital planning by capturing and reporting the potential impact of adverse scenarios on risk and performance metrics. This can also be applied across the planning horizon based on the same stress scenarios thereby helping organisations facilitate consistency and comparability between the various metrics.
Oracle Financial Services Enterprise Stress Testing & Capital Planning Analytics provides on-demand reporting for multiple risk scenarios, giving financial institutions a single, consistent view of income statements, balance sheets and risk measures under baseline and stressed conditions. It can also compare results across scenarios, helping organisations identify potential risks affecting the enterprise as a whole and manage them efficiently.
Financial institutions can use the same scenarios to project profit and loss, income and capital to drive consistency in the capital planning process.
A 360-degree view of enterprise-wide data helps eliminate silos and facilitate efficient regulatory compliance, helping financial institutions to concurrently comply with reporting requirements for multiple jurisdictions, including the UK Financial Services Authority (FSA), U.S. Federal Reserve and Australian Prudential Regulation Authority (APRARA).
"Traditionally, stress testing has been carried out in individual risk silos, ignoring the interdependence between the risk and finance functions of an institution," said S. Ramakrishnan, group vice president and general manager, Oracle Financial Services Analytical Applications. "Oracle Financial Services Enterprise Stress Testing & Capital Planning Analytics enables a more holistic approach to stress testing. It helps banks efficiently comply with both management and regulatory reporting while providing a single, consistent view of current and future financial and risk metrics across baseline and stress conditions thereby providing actionable insight to the capital management process."