KPMG

Stress Testing

Regulators in ASEAN (Singapore, Malaysia, Thailand, Philippines, Indonesia) require banks to perform enterprisewide stress testing, and IFRS 9 compliance by 1 Jan. 2019 (Indonesia and Philippines) and 1 Jan. 2018 (Singapore, Malaysia, Thailand). This compliance overhead adds resource and infrastructure capacity constraints for Tier 2/midtier banks as they need to access:

• Large volumes of historical data to develop accurate models.
• Sophisticated modeling practices and methodologies. Currently, most Tier 2 banks use only Excel to build and maintain such models, and these banks are largely unpenetrated by SAS account teams to date.

KPMG, a Big 4 consulting leader in risk advisory services, has key strengths in risk management consulting framework, gap assessment, modeling methodology and accounting expertise in IFRS 9 and stress testing. Leveraging KPMG’s industry and domain expertise, together with SAS’ stress testing and IFRS 9 solutions, we can provide a joint out-of-the-box IFRS 9 and stress testing solution.