Stress testing and capital planning are important for financial institutions in good times, but they are even more important in times of economic uncertainty. With the right support in changing conditions, banks and credit unions can provide top stakeholders with a range of expectations and quickly develop contingency plans.
Scenario analysis & planning solution
Proactively understand your portfolio’s behavior.
Pinpoint your risks.
Stress test results can help inform decisions in other risk areas, such as the allowance, asset/liability management, valuation, and more. Satisfy examiners with multiple types of analysis, and easily identify different trouble spots at your bank or credit union.
Features and functionality of Abrigo Stress Testing
Stress test different levels in your portfolio.
Abrigo offers banks and credit unions an easy-to-use stress testing platform that you can leverage to quantify different types of risk under a variety of scenarios.
Extensive Testing
Identify risk at different levels, with borrower-, concentration-, and institution-level stress tests.
Flexible Concentrations
Duplicate and edit scenarios to run stress tests at different severity levels in one analysis.
Multi-variable Scenarios
Use key factors: interest rate, cash flow, and collateral value to model different environments.
Data-driven Planning
Improve strategic planning and easily manage capital ratios to evaluate safety and soundness.
Comprehensive Reporting
Create reports to effectively communicate risk to management, the board, and examiners.
Valuable Models
Use forecast models to view ranges of outcomes on future ALLL levels and periodic losses.
"Abrigo Stress Testing is an efficient way to stress different levels of our portfolio. Since purchasing the solution, examiners have been very happy, making life easier for us."
Kristen Beggs, West Texas National Bank
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Advantages of Abrigo Stress Testing
Keep stakeholders informed with the
power of a single system.
Identify all potential risks that management and examiners need to know about with Stress Testing. A single connected system enables proactive behavior and increases efficiency within your risk management program.
Centralized
Stress any loan in the system, including CRE loans, using one platform. Fully integrate with other Abrigo solutions, such as Sageworks ALLL, Sageworks Insights, and more to get a seamless view of data across your institution.
Detailed
Satisfy your board, management, and examiners with a borrower or economic-based stress test. Identify potential trouble spots in the portfolio for risk management to stay prepared.
Efficient
Leverage economic-based scenarios to make more informed capital planning and lending strategy decisions based on stress results. Reduce manual tasks through monthly archived data and automated calculations.
Streamline your process
“The other thing that helped us was that we were using the Abrigo Stress Testing model. Because of that, we were already putting in additional data on debt service coverage, so when Abrigo ran our CECL data assessment, there wasn’t a lot of information that we had to go back and fill in.” Read More.
Andrew Reid, Executive Vice President and Chief Credit Officer, Bank of San Antonio
Integrated systems with Abrigo
Gain more data efficiency at your institution.
Entering the same data inputs for multiple risk analyses at your institution can be both time-consuming and laborious. With our interconnected systems at Abrigo, users only have to enter information once. Different functions that were once siloed can now seamlessly integrate with each other, all within one trusted platform.
Abrigo Asset/Liability Management Model
Abrigo Asset/Liability Management (ALM) is a web-based model designed to help you optimize net interest margin, assess risk exposure, and develop contingency funding plans. The Abrigo ALM model fully integrates with other Abrigo solutions, such as Stress Testing and Sageworks ALLL.
Abrigo Stress Testing FAQ
What is Abrigo Stress Testing?
Abrigo Stress Testing is a portfolio stress testing and scenario analysis solution for banks and credit unions. It helps institutions model how loans, concentrations, and the overall portfolio may perform under changing economic conditions and supports capital planning and contingency planning.
Who is Abrigo Stress Testing designed for?
Abrigo Stress Testing is designed for banks and credit unions that need to quantify credit and portfolio risk and communicate results to management, the board, and examiners. It supports teams responsible for portfolio risk oversight, capital planning, and risk reporting.
What types of stress tests can you run in Abrigo Stress Testing?
Abrigo Stress Testing supports borrower-level, concentration-level, and institution-level stress tests. This structure helps you pinpoint risk drivers from individual credits through portfolio segments and enterprise exposure.
What variables can Abrigo Stress Testing model in scenarios?
Abrigo Stress Testing supports multi-variable scenarios using key factors such as interest rates, cash flow, and collateral values. This enables scenario planning across different environments and severity levels.
How does Abrigo Stress Testing help with capital planning and safety-and-soundness discussions?
Abrigo Stress Testing supports data-driven planning by helping you evaluate outcomes and manage capital ratios under modeled scenarios. Results are built to help stakeholders evaluate risk and contingency actions in periods of uncertainty.
How does Abrigo Stress Testing support board and examiner reporting?
Abrigo Stress Testing includes comprehensive reporting designed to communicate risk clearly to management, the board, and examiners. The platform is positioned to help institutions “satisfy examiners” with multiple types of analysis and documented outputs.
How does Abrigo Stress Testing connect to CECL and other risk functions?
Abrigo Stress Testing is designed to inform related risk areas such as the allowance (CECL), asset/liability management, and valuation by using stress test results as inputs to broader risk decisions. This supports more consistent scenario-based analysis across functions.
Does Abrigo Stress Testing integrate with other Abrigo solutions?
Yes—Abrigo Stress Testing is positioned as part of an interconnected platform so users can enter information once and use it across analyses. The page specifically references integration with other Abrigo solutions, including ALM and Abrigo Allowance, for a more seamless view of institutional data.
What portfolios or loan types can be stressed in the system?
Abrigo Stress Testing is designed to stress loans within the system, including CRE loans, using a single platform. This helps institutions apply consistent stress testing methodology across key portfolio areas.
What makes Abrigo Stress Testing practical for ongoing use, not just annual exercises?
Abrigo Stress Testing is designed to reduce manual work with features like monthly archived data and automated calculations. That supports repeatable stress testing cycles and faster refreshes when conditions change.
How is Abrigo Stress Testing different from spreadsheet-based stress testing?
Abrigo Stress Testing is purpose-built portfolio stress testing software, while spreadsheets rely on manual updates, formulas, and version control. Abrigo emphasizes automated calculations, archived data, and examiner-ready reporting to reduce operational risk and improve consistency.
How does Abrigo Stress Testing compare to an in-house stress testing model?
Abrigo Stress Testing provides a structured platform for borrower-, concentration-, and institution-level testing with standardized reporting for management, boards, and examiners. In-house builds often depend on key-person knowledge and can be harder to maintain, document, and refresh across changing scenarios.
How does Abrigo Stress Testing compare to standalone point solutions?
Abrigo Stress Testing is positioned to integrate with other Abrigo portfolio risk functions (like ALM and Allowance workflows), so data entry and outputs can be reused across risk analyses. Standalone tools often create re-keying, reconciliation, and inconsistent assumptions across teams.
Why choose integrated stress testing + allowance workflows instead of separate tools?
Using integrated workflows can improve consistency between stress testing and allowance discussions by keeping scenarios, assumptions, and reporting closer together. Abrigo explicitly frames stress testing as informing allowance and other risk areas, supporting more defensible governance for audits and exams.
What should banks and credit unions look for in the best stress testing software?
The best stress testing software for banks and credit unions should support multi-level testing (borrower, concentration, institution), multi-variable scenarios, board/exam reporting, and efficient refresh cycles. Abrigo Stress Testing highlights these capabilities and emphasizes a single connected system for risk management.
What’s the difference between “portfolio stress testing software comparison” options that focus on reporting vs. those that support decisioning?
Reporting-only tools typically generate outputs without connecting results to planning actions. Abrigo Stress Testing emphasizes scenario planning, capital ratio evaluation, and contingency planning—so results can guide lending strategy and risk decisions, not just produce reports.
Resources on Stress Testing
Portfolio Stress Testing
The need for stress tests to understand current risks is critical for community institutions.
Maintaining Capital
Your economic stress testing estimates can help to inform your CECL calculations.
Stress Testing Best Practices
Stress programs should consider their tests on a one-year time horizon measured in mild/severe scenarios.
