From Stress Testing to Strategy: Modernizing Balance Sheet Risk Management
At Balance Sheet Management USA 2025, panelists examined how balance sheet risk management is shifting from a compliance-driven exercise to a strategic capability. Drawing on lessons from stress testing, ALM, liquidity, and capital planning, the discussion highlighted persistent challenges around data granularity, reconciliation across risk types, and siloed modeling frameworks that continue to slow decision-making and increase cost.
The conversation focused on practical solutions now emerging across the industry, including integrated scenario-based balance sheet management, streamlined model lifecycle governance, and smarter use of scalable technology and AI. Panelists emphasized that modernization does not require a single “big bang” transformation, but a clear vision delivered through incremental change, breaking silos, improving transparency, and aligning balance sheet insights more closely with business strategy and regulatory expectations.
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