Intense, real-world, memorable - gamified simulation training
Intense, real-world, memorable - gamified simulation training
Prepare for the unexpected. Equip your team with the skills to evaluate financial resilience under extreme economic conditions.
Capital Adequacy
Adverse and Severely Adverse Macroeconomic Scenarios
Credit Risk Modeling and Loss Projections
Liquidity Coverage Ratio and Net Stable Funding Ratio
Provisioning and Loan Loss Reserves
Strategic Capital Actions (Dividend cuts, Asset sales, Equity issuance)
Regulatory Reporting and Disclosure
Model Risk and Scenario Uncertainty
In the simulation, participants will:
Analyze a simulated bank's baseline financial position.
Apply provided adverse macroeconomic scenarios to loan portfolios and trading books.
Project key capital and liquidity ratios under stress.
Develop and Propose management actions to maintain regulatory compliance and market confidence.
Prepare and Deliver a concise stress test summary to stakeholders.
Compete on the dual objectives of safety and profitability.
Understand the components, purpose, and regulatory framework of bank stress testing.
Develop the ability to translate macroeconomic shocks into bottom-line financial impacts.
Practice making critical capital and liquidity decisions under pressure.
Enhance skills in communicating complex risk assessments to a non-technical audience.
Foster a holistic view of risk management that integrates credit, market, and operational risks.
1. Initial Analysis and Briefing Participants, organized into competing bank management teams, first log into the simulation dashboard. They receive their bank's confidential portfolio, including detailed breakdowns of loan books, trading assets, and current capital/liquidity positions. A central "Regulatory Brief" is released, outlining the official adverse and severely adverse macroeconomic scenarios (deep recession, housing crash, market volatility) that must be applied.
** 2. Modeling and The First Shock** Teams use integrated analytical tools within the platform to apply the initial wave of scenario variables to their portfolio. The simulation engine calculates the projected impact on credit losses, asset values, and earnings. Teams see their capital and liquidity ratios begin to deteriorate in real-time on their dashboards. This phase focuses on understanding the direct mechanical impact of the stress.
3. Strategic Decision-Making Faced with declining buffers, teams must now make a series of critical management decisions. The platform presents a menu of strategic options: Should they suspend dividend payments? Issue contingent capital? Sell certain assets? Each choice has quantified trade-offs affecting capital, profitability, and market confidence. Teams submit their strategic action plan for the round.
4. The Second Wave and Crisis Communication Just as teams stabilize their position, a second, unexpected "tail-risk" shock is deployed via the platform (a counterparty failure, operational loss event). Teams must reassess, adjust their strategy, and crucially, prepare a concise, persuasive management summary or board report using a built-in document tool, justifying their actions to skeptical stakeholders.
5. Live Debrief & Scoring The session culminates in a live, facilitated debrief. The instructor reveals a leaderboard, ranking teams on key outcomes like final CET1 ratio, pre-provision net revenue, and the quality of their communication. The debrief dissects why some strategies succeeded where others failed, transforming competitive results into powerful lessons on integrated risk management, strategic foresight, and clear communication under pressure.
Who is the target audience for this simulation? It is designed for MBA and Master’s in Finance students, executive education cohorts, and corporate training programs for banks, consulting firms, and financial regulators.
What are the technical prerequisites for participants? A foundational understanding of banking and financial accounting is helpful. The simulation is designed to be accessible—all necessary formulas and modeling guides are built into the platform.
Is this a realistic regulatory stress test model? While simplified for educational clarity, the simulation is built on the core principles and ratio definitions used by major regulators (the Fed's DFAST framework), providing a highly authentic learning experience.
How long does a typical simulation session last? The core simulation can be run in 3-4 hours. We also offer extended versions with advanced modules (designing your own scenarios) spanning a full day or multiple sessions.
What is the optimal team size? We recommend 3-5 participants per team to encourage debate and division of analytical tasks.
How is the simulation delivered? Is any special software needed? It is entirely web-based. Participants only need an internet-connected device (laptop/tablet) to access our secure simulation platform. No downloads or installations required.
Can the simulation be customized for our specific institution? Yes. We offer customization options, including incorporating your institution's specific portfolio data or regional economic scenarios, for corporate clients.
Depth and logic of scenario analysis
Clarity, coherence, and persuasiveness of the valuation memo and presentation
Ability to adapt and revise valuations in light of news shocks or changes
Collaboration, division of work, integration of roles, and final coherence
Rating by peers and self-reflection on approach and decisions
Join this 20-minute webinar, followed by a Q&A session, to immerse yourself in the simulation.
or
Book a 15-minute Zoom demo with one of our experts to explore how the simulation can benefit you.
