IMPLEMENTATION OF A CREDIT RATING STRESS TEST MODULE
Background & Challenges
In accordance with Basel regulations, Natixis was seeking a business analyst capable of:
- Implement a new tool for credit rating stress tests
This topic was to be addressed as part of the ongoing implementation of the Agile/Scrum methodology.
The stress testing teams wanted to have a rating stress test module available directly within the rating tool. Business users were using various queries to retrieve rating information and then relied on a VBA macro to simulate stress tests. This second part was highly case-sensitive (due to updates to rating methodologies, grid redesigns, etc.).
Solution
The various stages of the project were as follows:
- Establishment of regular workshops between business analysts and developers in order to:
- Understanding the Current Issue
- Share the same level of information
- Assist in the identification of needs
- Selecting a solution based on several criteria (performance, ease of use)
- Prioritize the rating models to be implemented in the stress testing module
- Specifications and Developments
- Business Analyst Tests
- Business testing
- Deployment
- It should be noted that the technology used was subsequently employed in the redesign of the rating engine (another project at Natixis).
Key success factors:
- The speakers' expertise on the subject: this enabled a quick understanding of the topic
- Cross-functional communication (Business Unit/Business Analysis/Development):
- The various preparatory workshops for the project provided a clear understanding of what was expected and the path to follow
- Regular progress updates: helped confirm that the project was on the right track
Challenges encountered:
Since the project’s validation testing phase took place at the start of the COVID-19 pandemic, there were fewer in-person interactions (which typically help the project move forward), and the validation process fell slightly behind schedule
Benefits for the customer:
A new module that makes it quick and easy to perform the various required stress tests.
Quanteam’s expertise makes all the difference
- Over 16 years of experience in solving problems in investment banking
- Expertise in the analysis and operational implementation of regulatory texts
- Proficiency in Agile methodologies
- Expertise in Basel regulations
News
from our experts
Do you have a project to submit?
Let's meet
