Many firms seek to stress test the performance of their portfolios according to their unique idiosyncratic risks for compliance or strategic planning needs. Moody's Analytics produces plausible custom/idiosyncratic scenarios to enable firms to more realistically stress-test the performance of their portfolios.
Scenarios are designed to reflect your portfolios, geographic footprint, unique exposures/assumptions and overall business model. We can leverage your existing stress testing and risk identification processes, including reverse stress testing, to inform your institution-specific scenario design. Our economists can build a complete scenario around your key risks or collaborate with you to specify a scenario. For example:
Moody's Analytics methodology is fully documented. Model validation is also available and structured according to the guidelines provided by the Federal Reserve and the Office of the Comptroller of the Currency.
Moody's Analytics economists have extensive expertise in producing custom scenarios, leveraging best-in-class modeling and analytical expertise in national and regional data management and forecasting.