Portfolio, capital and scenario planning.
What happens to the book if conditions change, and where should capital go? Luminnovate projects the book under each scenario with honest ranges, and finds the allocation that does best within your limits.
Plans built on a single projected line hide how wide the outcomes are. Capital and risk appetite are set once a year, while the book moves every month.
| Scenario | Arrears | 90% range | Losses | Capital used |
|---|---|---|---|---|
| Base case | 2.9% | 2.5 to 3.4% | $4.1m | $38m |
| Cash rate up 1 point | 3.6% | 3.1 to 4.2% | $5.2m | $41m |
| Construction downturn | 4.4% | 3.7 to 5.3% | $6.8m | $44m |
Illustrative example.
What Luminnovate does
- Simulates the bookArrears, cash, losses and capital under each scenario, with ranges.
- Optimises within limitsThe objective you set, inside risk appetite, concentration and capital limits.
- Records the choiceThe scenario, assumptions and chosen option, for the committee and the regulator.
Start with the scenario your committee asks about most. We run it on your own book.
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