All models, all scenarios, all assumptions, all results on one platform integrated with downstream accounting and reporting capabilities
EVOLV enables financial institutions to efficiently execute advanced risk analytics through a controlled and scalable platform, which brings together data and models from all lines of business, addressing data management challenges and closing the gaps between model development, model execution and reporting. These capabilities have been used in the market in support of complex, enterprise-wide processes such as regulatory bank stress testing.
Financial institutions have been focusing on improving their modeling capabilities in response to regulatory pressures, such as stress testing mandates under CCAR and DFAST, or due to more active portfolio management. However modeling is only one part of the equation. The other, often forgotten but equally challenging part, is the overall execution process. Many financial institutions employ more than one model and the results of those models must be used by other groups.
Banks attempting to perform exercises, such as stress testing, suffer from inefficiencies in executing their models, translating results into financial forecasts, aggregating results into enterprise views, run multiple what if scenarios, and satisfying the various regulatory reporting requirements.
EVOLV is a centralized platform, with the ability to host, execute and report on a wide range of models with added capabilities to dynamically scale hardware / infrastructure to enable maximum efficiency. In addition, EVOLV is delivered with a proprietary model set (independently validated) with varying degrees of complexity to meet the needs of financial institutions of all sizes.
EVOLV is the only solution in the market with out-of-the box capabilities supporting bank stress testing, including the following:
- User-Defined Scenario and Execution Framework
- A "Cohort Developer" allowing users to segment the loan portfolio by risk and accounting characteristics and using those cohorts to assign different models, assumptions, and scenarios.
- A "Scenario Manager" allowing users to define multiple scenario runs such as varying positions, economic assumptions, dials, run dates, discount rates, etc.
- An "Execution Center" allowing users to define multiple executions, save executions, and manage executions.
- Reporting and Analytics
- Detailed Reporting on all runs with drill-down capabilities to loan level
- Ad-hoc Reporting
- Run Comparisons
- Attribution Analysis
- Sensitivity Analysis
- Automatic Mappings to DFAST and CCAR templates
- Loan Modeling - EVOLV Models
- Multinomial logistic delinquency transition model for residential loans
- Age-period-cohort loss model for CRE loans, built with our partner Prescient Analytics
- Econometric default and prepay model for auto loans
- Econometric “top-down” macroeconomic sensitive loss models for all loan types
- Basic cash flow models supporting both loan-level contractual cash flows and expected cash flows
- Loan Modeling - Bank Models
- Ability to securely and efficiently house a financial institution’s internal and/or third party models of all levels of sophistication that would enable them to execute uniformly and leverage the reporting capabilities and interfaces with EVOLV's other solutions.
- Specific Bank Stress Testing Capabilities
- Manage assumptions and data in a controlled and auditable way
- Innovatively support new business forecasting using varied parameters
- Host models of all levels of sophistication and execute them in a scalable and controlled yet flexible manner
- Translate model output to forecast results, both from the economic view and the accounting view
Users are able to segment their portfolio across models and apply different credit and stress assumptions via the user interface. This flexibility eliminates the constraints of having to do multiple runs and the manual work of then aggregating those results in spreadsheets. Version control is also easily manageable since modelers, analysts and credit managers utilize the same system to upload models, execute forecasts and analyze results through our comprehensive suite of reports. EVOLV’s data architecture and industry-leading reporting tool (within EVOLV SMART Data) means reports are also easily configurable to include specific data attributes along with the reporting results desired by your institution. The reporting tool enables efficient, detailed migration and trend analysis. Unique to EVOLV is the depth of integration between risk and finance attributes resulting in a single system to allow financial institutions to easily track risk management processes, support quality control and audit requirements.
Ultimately, EVOLV enables financial institutions to fill the gap between modelers and the business users of model outputs for loans of all types in a scalable, controlled and integrated solution.
For more information call us at 703-342-0040 or Contact Us.How to Execute a Dodd Frank Act $10–$50B Stress Test BMO Harris Bank – Turning Stress Testing into a Competitive Advantage Solutions 5 Dodd-Frank Regulations Require Banks to Use More Flexible Loan Valuation Systems