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Delivered in an easy-to-use web-based front end, ScenarioFrontier provides users the flexibility to create customized scenarios, the power to analyze strategic plans, and the oversight to monitor budget performance.
Separate software applications for budgeting, FTP, and stress testing can choke your business. Software firm Oracle describes this as Software Hairball Syndrome.
BBA’s ScenarioFrontier software delivers integrated finance, risk, and treasury platform, to optimize capital management and risk-adjusted profitability using wide-ranging macroeconomic and microeconomic scenarios. Our product is tailor-made for clients of any size and can easily be scaled up or down to meet the specific needs of senior managers including CFOs and CROs.
With significantly improved budgeting and forecasting capabilities, there is no reason to struggle with labor-intensive, error-prone, manual collection and consolidation of spreadsheets, multiple disparate budgeting systems used for different business lines, or outdated planning solutions that require extensive administration and support.
Imagine the analytical power of combining the cost of funds, risk quantification, budgeting, and forecasting with scenario-based stress testing, designed to work in sync to help organizations execute their strategy, monitor KPIs, and provide accurate reporting to management and the Board.
ScenarioFrontier is a powerful tool for day-to-day strategic planning and capital management, permitting companies to identify and quantify risks and opportunities across a wide range of potential economic environments.
Core Benefits
Transfer Pricing and Budgeting
Develops internal yield curve, define product margins, validate budget assumptions, and track budgets. ScenarioFrontier helps intensify or dampen growth targets, by identifying risks associated with overheated markets that need to be avoided and opportunities that exist in under-valued markets.
Compliance
ScenarioFrontier is designed to meet regulatory requirements as outlined in the Basel Committee's Principles for Sound Stress Testing Practices and Supervision. The platform ingests raw data and assigns risk-adjusted capital based on macroeconomic scenarios, using the Point-in-Time approach.
Scenarios Library
ScenarioFrontier clients receive quarterly scenario forecasts developed by BBA's experts. The platform also provides access to a scenario library to eligible clients to customize scenarios and simulate their impact on capital.
Stakeholder Requirements
Other uses of ScenarioFrontier include helping management make decisions based on the organization’s capacity, risk appetite, and actual risk level, plan for dividend distribution, develop capital headroom, and monitor premiums for depositor insurance.
KEY METRICS
- Risk Management
- Risk-adjusted profitability
- Default, loss rates and capital attribution attached to each credit transaction based on credit and concentration risks
- Management action plan
- Capital and profitability management
- Current and projected capital sources and uses
- Dividend distribution planning
- Headline earnings and projections
- Earnings impact by risk type
MODULES ORGANIZED AROUND HOW YOU WORK ON REGULATORY COMPLIANCE
Budget and Financial Projections Workflow
Quarterly budget and financial forecasts, covering asset and liability growth forecast, income
statement, capital management, and dividend plan.
Scenario Library
A macroeconomic scenario simulation module to analyze the impact of macroeconomic variables on
capital.
Financial and Non-Financial Risks
ScenarioFrontier comes equipped with best-practice risk measurement models
Management Dashboard
Monitor risk appetite, generate automated report packages, and download directly to PPT, Word, or
Excel for analysis and presentations.
Archiving
Store and access historic regulatory filings and create a single go-to source for audit purposes.