Getting started with Stress Testing & Capital Planning (DFAST)

Stress Testing & Capital Planning runs economic scenarios, such as a rise in unemployment or a fall in property prices, through your loss, revenue and balance sheet models and projects your capital ratios over the planning horizon. Analysts assemble each run from versioned scenarios, models and assumptions, management overlays are recorded with their rationale and approval, and the results feed your capital plan and board reporting. Every number can be traced back to the inputs that produced it.

What it is for

Stress testing at many institutions is a chain of spreadsheets: macroeconomic scenarios in one, loss and revenue projections from several model owners in others, and a capital workbook that pulls them together. Each cycle depends on a few people who know how the files connect. Overlays and late changes are hard to see, and when the board, model validators or examiners ask how a result was produced, reconstructing it means retracing every file by hand.

• Scenarios, model outputs and capital calculations live in disconnected spreadsheets
• Management overlays and late adjustments are not recorded with their reasons
• Re-running a scenario after a change means repeating manual steps
• Results are hard to trace back to inputs for validators, the board and examiners

Who uses it

• Treasury, capital planning and stress testing teams at banks and credit unions
• Chief financial officers and treasurers who own the capital plan
• Model owners for credit loss, revenue and balance sheet projections
• Model risk management and validation teams who challenge the process
• Boards, internal audit and examiners, who need to see how results were produced

Before you start

• Your organization licenses Stress Testing & Capital Planning (DFAST) from Moraph.
• A Moraph client account in that organization, signed in.
• Access to Stress Testing & Capital Planning (DFAST) in Moraph Apps, given by an administrator in the Moraph Portal under People and access.
• For setup: the product administrator role.

Steps to get started

1. Sign in at app.moraph.com with your Moraph account.

2. Open Stress Testing & Capital Planning (DFAST) from the launcher. The first time anyone opens it, its workspace is created from the default described in Workspace reference.

3. Check your role: what you can see and do depends on it. See Roles and permissions.

4. Product administrators: work through Set up Stress Testing & Capital Planning (DFAST) before your team starts.

5. Everyone else: start with Everyday tasks.

Where to go next

• Set up Stress Testing & Capital Planning (DFAST)
• Everyday tasks
• Connect your systems
• Security, data and compliance
• Troubleshooting and the support guide
• Product overview on moraph.com