SOLUTION
FOLLOWS FOCUS
BETA Inside is a quantitative management consulting firm and analytical tool provider with its main focus on risk management and regulatory tasks for the financial sector as well as on corporate finance topics. We are Vienna-based, available anywhere where you need us, and we are available immediately if necessary. Our constant goal is contributing to your strength – while all the rest is flexible in a world which requires adaptability first and foremost.

Struggling with scenario definition
STRUGGLING WITH SCENARIO DEFINITION
Scenario analysis and stress testing have, over the last meanwhile nearly two decades, become something like tools of choice – due to global financial, economic, political, technological, societal, and last but not least climate change induced challenges. At their core stands, besides methodological selections and data issues, the design and specification of the stressed and unstressed scenarios which should be investigated. And this is a point where it usually gets difficult.

MODELS DOWN TO EARTH, AND UP TO HEAVEN
Models down to earth, and up to heaveN
Which risks and real world characteristics must models be able to address in the future, in order to be a valid risk management and steering tool? Furthermore: We talk about the broad spectrum of possibilities for investigating risk management, risk quantification and pricing topics offered by a specific model category .

ECB guide to internal models: Credit risk – use of data
ECB guide to internal models: Credit risk – use of data
In February 2024, ECB Banking Supervision released its revised ECB guide to internal models. From the topics addressed we focus on selected aspects of the use of data in a credit risk context – as, e.g., the challenges resulting from intergration of external data, external ratings or pooled data.

ALTERNATIVE DEFAULT DEFINITIONS: STRUCTURE OF CREDIT SPREADS
ALTERNATIVE DEFAULT DEFINITIONS: STRUCTURE OF CREDIT SPREADS
We developed a structural credit risk model that allows for two different debt maturities, short-term and long-term, and applied it to three alternative default regimes each of which is characterized by its own default boundary. Closed-form valuation formulas are derived for equity, firm and debt value. This was joint work with the highly esteemed Engelbert Dockner.