SGV hosts executive briefing on Strategic Forecasting Framework

SGV hosted an executive briefing on the Strategic Forecasting Framework at the WSDC training rooms. The event aimed to provide local and foreign banks information on how stress testing can be integrated into their business strategy. Recently, banks in Asia gained an understanding of their material risks and implemented stress testing models, as evidenced in the annual Internal Capital Adequacy Assessment Process (ICAAP) submissions. Banks, however, have been facing challenges in integrating stress testing into their business strategy because of the time it takes to assess the impact of a given scenario.

More than 50 bank senior officers and executives attended the two-hour briefing, which was spearheaded by SGV FSRM partners Ian Lauron and Francis Lumbres. SGV discussed how stress testing and forecasting evolved over the years and how the activity has transpired in the Philippines.

EY Singapore FSRM Director Vikas Deep Sharma discussed the strategic forecasting framework and its benefits. He demonstrated how to use the strategic forecasting tool to quickly assess the impact of stress scenarios on the balance sheet as well as profit and loss, including capital adequacy. The tool was designed to promote greater integration of stress testing into the strategic and capital planning process of banks, as well as to facilitate a central team in conducting risk sensitivity tests.