Capital Stress Test (DFAST/CCAR) Model Verification : Capital Stress Test (DFAST/CCAR) Model Verification

Accurately measuring and effectively managing risk to capital is a vital need. This was made evident in the recent financial crisis. A sweeping regulatory response, including DFAST and CCAR stress testing requirements, is the new reality for Boards and managers.

MountainView-McGuire employs a comprehensive model validation process that has been widely vetted by all regulatory agencies across a diverse range of financial models. Our systematic approach to model validation ensures that all dimensions of your bank's capital stress test model implementation (conceptual design, technical and statistical details, outcomes accuracy, and controls) are effectively challenged and validated.

The MountainView-McGuire Capital Stress Test Model Validation Report empowers you with complete confidence in your capital risk analysis and compliance solution.

The MountainView-McGuire Capital Stress Test Model Validation Report effectively challenges and validates every facet of your institution's capital stress test model and its supporting model governance. This report ensures full compliance with Dodd-Frank Act Stress Testing (DFAST) and Comprehensive Capital Analysis and Review (CCAR) model validation requirements.

The report validates the technical adequacy and affirms the outcomes of all relevant stress test model components - interest rate risk, liquidity, credit loss, and PPNR - and the consolidator model in baseline, adverse, and severely adverse scenarios. Model design and integration, the model control environment, and governance are also assessed. Special emphasis is placed on verifying the econometric integrity of the institution-specific models used to forecast credit losses and PPNR.