Jul 9, 2020
We are zeroing in on stress testing at the portfolio level as
the country melts down into the pandemic recession. Consider if you
need to up your game, increase stress testing frequency, and better
understand how this recession is the same, but different. Rob
explains why a 'Reverse' stress test should be your first step and
what to do next.
Topics discussed in this episode:
2:25 We should be prepared for this pandemic
5:42 A reverse stress test: What and why?
6:34 Dive deeper to segment your analysis
9:52 Frequency of stress testing in this environment
11:54 Understand your concentration risk
14:20 Lower your risk by hedging your portfolio
16:01 What the examiner is worried about
About Rob Newberry:
Rob Newberry has over 20 years experience in the financial
services industry including 15 years at Wells Fargo in strategic
and leadership roles. He is a Senior Advisor at Abrigo, formerly
known as Sageworks, FARIN, MainStreet Technologies, and Bankers
Toolbox. Rob is instrumental in developing and assisting community
financial institutions with Abrigo's various Credit Risk
Solutions.
Resources:
In this whitepaper, Coronavirus Survival Guide: Loans
Under Pressure, we will discuss five simple, proactive
strategies that lenders can implement – even during a forbearance
period — to ensure as many customers survive and return to
financial health as possible.
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https://www.abrigo.com/whitepapers/coronavirus-survival-guide-loans-under-pressure/
Portfolio Management in Crisis: Coronavirus
Implications for Lenders. In this whitepaper, we
acknowledge that the challenge for most financial institutions will
be how to quantify and document the additional risk they may face.
Knowing that there are more questions than answers at this time,
lenders can still take specific action during the emergent
phase.
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https://www.abrigo.com/whitepapers/portfolio-management-in-crisis-coronavirus-implications-for-lenders/
Abrigo helps over 2,500 community
financial
2018 Credit Risk Readiness Report
In this study commissioned by Linda Keith CPA, find out what
senior lending and credit professionals thought about our readiness
at the end of the expansion, before this pandemic began. Are we
more ready or less? What can we do it be more ready?