Bespoke stress testing – made easy

You’ve all got to do stress testing. That’s what the regulators are saying in England, Scotland and Wales. No wonder, as there’s such a lot on the horizon. Is Brexit a known unknown or an unknown unknown? Whatever it is you’ve got to make plans for it. And we can help.

Step one: We take the Financial Forecast Return (FFR) output from your business plan model (eg Brixx or Abovo) and put it into our dashboard model.

Step two: We agree the stresses that you want to apply – such as interest rate rises, slower and lower value sales, increased arrears, hikes in labour and material costs and Bank of England scenarios – we can be flexible.

Step three: We apply your actual covenants to check the impact of the stresses on the dashboard.

Step four: We work with you to agree realistic ways of staying within covenants such as cost reductions, channel shift, slowing or halting development and the pros and cons of merger – great care must be taken not to compromise safety.

Stress testing graphs

What do you get?

The numbers: A model showing your business plan before and after stresses and mitigations.

Bringing the stress test to life: The dashboard graphs generated by the model can be used to explain how stresses and mitigations impact on covenants for reports and presentations to boards and regulators.

Moving forwards: You can use the model to test other stresses and mitigations as you wish (live until the end date for the FFR you send us). Bespoke stress testing – made easy.

 

For further information please contact Anna Pattison on 01904 557197 or anna.pattison@hqnetwork.co.uk.