Liquidity Stress Testing

Having a sound approach to managing liquidity risk has long been a pillar of prudent balance sheet management. It’s imperative to maintain a dynamic framework forecasting your liquidity position, its potential risks and failure points, and their impact on the performance, safety and soundness of the institution. This discipline is quickly evolving from being industry “best-practice” to regulatory requirement. How can you keep pace?

An extension of your ALM modeling

A dynamic extension of Empyrean ALM allowing you to layer stresses of the various sources and uses of funds, borrowing capacities, and haircuts onto any ALM scenario’s balance sheet projection and market conditions to analyze its impacts.

Assess and optimize your strategy and plan

Enabling you to continuously assess the impact of stress on your funding strategy and contingency funding plan, simulate failure points and key risk metrics and ratios, and test, revise and mitigate your liquidity planning processes.

Appease regulatory demands

Designed to meet and exceed the guidelines laid out by the Interagency Policy Statement on Funding and Liquidity Risk Management SR10-6 and to eliminate the risk inherent with maintaining complex, outdated spreadsheets.