Vichara leverages its expertise in risk management, financial modeling and big data management to provide highly transparent regulatory solutions.

Stress Testing

Vichara helps financial institutions perform CCAR and DFAST stress tests to meet the Federal Reserve’s evaluation criteria for assessing their resilience to adverse market developments.

Vichara's solutions support securitized products such as RMBS, CMBS, CLOs, ABS CDOs, other consumer ABS as well as their underlying collateral like residential mortgages, commercial mortgages & corporate loans. Risk measures like probability of default (PD), loss given default (LGD), exposure at default (EAD) are produced for assessing capital planning and capital adequacy. Customized reports for internal reporting as well as for submissions to regulators can be produced using our solutions.

Our experience in analyzing large portfolios at most granular level using highly parallelized computing framework enables us to perform these tests in a time efficient manner.

As part of Vichara’s solutions for stress testing, our clients analyze their portfolios under various stress scenarios while also having the ability to:
  • Build new risk models or extend existing client models using Vichara’s modeling framework. Vichara’s modeling framework helps incorporate macroeconomic indicators and multiple data sources to develop an appropriate risk model.
  • Integrate existing proprietary or 3rd party risk models.
  • Create additional stress scenarios and analyze impact on portfolios.
  • Combine large collateral data sets with model projections to analyze risk distribution.