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Interview October 30, 2025

From Stress Testing to Strategy: Modernizing Balance Sheet Risk Management

Charles Richard, Co-Founder

Saqib Nazir, Vice President Treasury, TD Bank Financial Group

Darko Lakota, VP, Interest Rate Risk Management & Pension , RBC

Jeff Dejean, Managing Director, Funds Transfer Pricing , Scotiabank

This panel at Balance Sheet Management 2025 explores how banks are evolving balance sheet risk management beyond regulatory stress testing toward more integrated, forward-looking decision frameworks. Speakers discuss granularity, model consistency, technology enablement, and the growing role of AI in supporting resilient balance sheet strategy.

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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