KST – Stress Testing Solution

A stress testing and ALM software solution with built-in data integrity and transparency

The KnowCo Stress Testing (KST) application enables users to carry out Liquidity risk, Credit Risk Capital, and Interest Rate risk stress tests.   This offers greater assurance and transparency around data integrity and a significant reduction in the senior management time spent controlling spreadsheet risk.

We combine regulatory and business subject-matter expertise with pragmatic, analytical data processing to offer Stress-Testing and Asset & Liability Management software that is highly configurable, scalable and intuitive.

Enhance Your Stress Testing Capabilities

KnowCo supports financial institutions by reducing the significant and fast-growing workload on risk and compliance professionals involved in stress-testing.

Key benefits include:
  • automated uploading of new datasets at cash-flow level
  • data error reporting according to your own data integrity rule-sets
  • saving and re-running existing scenarios on the latest data
  • rapid creation of new scenarios or changes to existing scenarios
  • data-filter funcitionality permitting additional focus on particular cash-flow balance sheet
  • multiple out-of-the-box MI reports developed from user requirements over 10 years
  • key regulatory reports for liquidity
  • drill-down reports at the most granular levels for full transparency

With KnowCo’s Stress Testing (KST) application, we offer our clients the option to integrate a new ICAAP Manager module which allows our clients to move away from convoluted, opaque spreadsheets towards an alternative software solution.

Incorporating a new ICAAP module

The ICAAP Manager pulls together all of the outputs from the balance sheet forecasting scenarios in the ALM system, and then allows the user to incorporate their own projections of income and expense, operational risk requirements, market risk requirements, and other firm-and scenario-specific data, to produce a Capital Dashboard that allows you to monitor your Capital Surplus/Deficit over your business planning horizon.

Benefits of a Dedicated Stress Testing Infrastructure

  • Put an end to reliance on user-developed spreadsheets by storing data, scenarios and output securely, in a controlled production environment
  • Enable skilled personnel to focus on stress-testing itself (rather than spreadsheet risk management)
  • Clearer, better visualisation of stress-testing outputs
  • Enables the necessary harmonisation between credit and liquidity stress-testing (for example recessionary scenarios and credit concentration scenarios)
  • KST stress parameters include:
  • rollover/roll-off
  • past due
  • concentration stress
  • portfolio growth and diminution
  • FX risk
  • marketable asset risk
  • yield curve risk, basis risk, and optionality and repricing risks.