Building portfolio stress testing and risk-appetite oversight

Macro and geopolitical shocks only inform risk appetite if the stress library matches the portfolio.

A financial institution required enhanced portfolio oversight and stress-testing capabilities to assess macroeconomic and geopolitical events.

Our consultant developed methodologies covering economic downturns, sector-specific stresses, supply-chain disruptions, rating migration and geopolitical risks.

The framework strengthened management’s understanding of portfolio vulnerabilities and supported effective risk-appetite management.