MoodyÕ enhances risk assessment tool for bank stress tests

Moody’s Analytics released an enhanced version of RiskCalc™ Plus, its tool for measuring the probability of default and a key credit risk management tool.

One of the new features includes stress-testing models for assessing financial institutions. 

Regulators are prescribing different modeling approaches and requirements in order to produce transparency around stress-testing models. RiskCalc Plus now offers two stress testing modeling approaches for evaluating private-firm commercial and industrial loan portfolios.

"Many risk practitioners are struggling to build, validate, and integrate credit analytics into their stress-testing platforms," said Thomas Day, senior director at Moody's Analytics. 

"RiskCalc Plus streamlines the process by allowing firms to focus less on process and more on risk analysis. As an established product, based on comprehensive data, granular analytical capabilities and flexible platform delivery choices, it is an ideal tool in any stress-testing process, as a primary, challenger, or benchmark model." 

RiskCalc Plus consists of a global network of 29 private firm models specific to various regions and industries.

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