COVID-19 and the associated containment measures being taken have created significant uncertainty. Banks, insurers, asset managers and other financial services companies need to react in an agile manner as these events unfold in order to fully understand and anticipate what means for their business. Regulators are also demanding scenario modelling that shows that regulated entities have an understanding of the potential impact on their customers, capital and liquidity bases.
Dynamic financial modelling and stress testing processes will be key to this understanding. We are helping our clients through this process and assist with all aspects of the required analyses, including the development of macroeconomic scenarios, credit loss modelling and impact analysis on regulatory ratios.