In a post-crisis climate, governments, boards and regulators are demanding that financial institutions describe what would happen to their assets in stressed “what-if” scenarios. Risk Integrated’s newest risk and reporting platform gives banks the ability to perform the stress test, not just on their outstanding commercial real estate loans, but across all asset types.

The Generalized Finance System (GFS) is used by risk group and portfolio managers to report on their capital needs in times of extreme but possible scenarios, covering these asset types:

  • Commercial real estate
  • Commercial loans
  • CDOs
  • Equity stakes in real estate
  • Project finance
  • Asset backed securities
  • CMBS
  • Retail mortgages
  • Corporate lending
  • Guarantees

The GFS is tied into a bank’s existing loan management system for real-time updating. Stress test results are available at the asset and portfolio level, and if questions arise, there is a complete audit trail showing all the data, assumptions and models used in creating the set of stress results—allowing for credible and timely reporting. The high calculation speed built into the GFS meets the challenge of manipulating massive amounts of data.