Stress Relief

Are Vended Systems the Answer?

Following the financial crisis, stress testing has become a central means of determining capital need for banks and the approach is here to stay.

Stress testing will only increase in complexity and many banks are considering implementing stress testing systems. In light of this, the vended system market has been developing quickly and there are now a host of system solutions available to banks. Whilst there is a valuable role for systems, their integration into the stress testing process will be a long term effort involving multiple staged implementation processes.

In our latest report on stress testing, we provide an overview of the market for vended stress testing systems and address the following questions:

  • What do vended stress testing systems actually do?
  • What can’t or shouldn’t be supplied by vendors?
  • What underlying principles should drive development?

In developing this report, Oliver Wyman met with nine major providers of stress testing solutions and went through a structured process of evaluating their offerings, supplemented by interviews of users, or potential users, of the systems.

Stress Relief – Are Vended Systems the Answer?