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Stress testing & scenario modeling

Examining the scenarios behind capital planning.

A bank capital-planning validation workstream covering time-series and macroeconomic scenario forecasts.

The question

A major bank’s Comprehensive Capital Analysis and Review (CCAR) program required validation of the forecasting and economic-scenario models used in capital planning.

Adam’s work

As an engagement manager at Deloitte, Adam led a validation workstream reviewing time-series and macroeconomic scenario forecasts with SAS, MATLAB, R and Python. He also supervised scoring and automated validation-report tools.

The contribution

The work combined review of scenario forecasts with analytical and reporting tools for the validation process. Adam’s responsibility was a workstream within the broader bank program.

About this case

Drawn from contemporaneous résumé descriptions. The bank’s identity, wider project budget and confidential findings are omitted.

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