As the independent designer for this project, I was tasked with transforming the Stress Testing module with limited functionality into a more advanced, data-driven risk simulation tool. In this case study, I will elaborate on how I helped simplify complex workflows, improve data management, and ultimately enhance the clarity of risk reporting and the user experience.
Background
A demand for more flexible, efficient, and detailed simulations to handle the evolving complexity of risk management.
Stress testing is a vital tool for financial institutions to simulate how adverse market conditions, such as economic downturns or sudden market shocks, could affect their portfolios. It enables portfolio managers, financial analysts, and risk management teams to assess their risk exposure and make informed decisions about managing collateral and ensuring regulatory compliance.
The Stress Testing feature within the Collateral Monitoring (CM) module plays a crucial role in helping users simulate these conditions. Initially, this feature allowed users to run stress tests based on predefined scenarios, such as the 2019 Covid Market Crash. However, as regulatory demands increased and the need for more advanced simulations grew, the original solution became insufficient.
Challenge
The existing user interface restricted the system from incorporating advanced models, limiting users' ability to perform detailed and efficient risk simulations.
Responding to the need for more advanced risk management tools, the team introduced innovative Factor-Based Risk Simulation models through intensive research and development. This backend upgrade surpassed the capabilities of the existing UI, prompting a complete redesign to empower users with an intuitive interface for more complex, customizable simulations.
To identify and address the shortcomings of the existing Stress Testing interface, we conducted contextual research, gathering feedback from clients and internal audits. Besides the technical constraints, the key insights revealed from the research are: