Creating a Scenario

6.5.1 Creating a Scenario

To create a scenario:

Ensure that you have defined a variable.

Login to STSA.
The Workspace Summary page is displayed.
In the Workspace Summary, Sandbox tab, launch the required workspace.
Click Scenario.
The Scenario summary page is displayed.
Click Create New.
The Scenario Details wizard is displayed.
Provide a name and description for the scenario you are creating.
In source details section:
1. To classify the source of the scenario based on its origin (by market requirements or internally in the bank), select the source as external or internal from the Source drop-down menu.
2. Provide the source links or the details of the source in Source Details.
  
  Note:
  You can source a scenario from a wide variety of market sources or generate it internally (by the bank).
3. Select a theme (the subjects that are covered by the scenario) for the scenario you are creating from the Theme drop-down menu.
  The following list of themes are available for a scenario:
  - Climate
  - Industry Specific
  - Macro Economic
  - Market
In the Time Horizon Details section:

Note:
For more information about instantaneous frequency behavior, see the Time Horizon Detailed Behavior section.
1. Provide the number of times you want to calculate the scenario in the Time Frame field.
2. Select the frequency for how frequently you want to run this scenario and click the Add icon.
  You can select from one of the following frequencies:
  - Daily
  - Instantaneous
  - Monthly
  - Quarterly
  - Weekly
  - Yearly
  - 5 Yearly
  You can now specify multiple combinations of frequency and timeframe to generate scenario dates. Previously, only one combination was allowed. This enhancement enables more flexible scenario timelines—for example, applying monthly shocks at first, then switching to yearly intervals.
  Frequency refers to the interval between scenario dates. Supported values include:
  - Daily – Generate dates every day
  - Monthly – Generate dates every month
  - Quarterly – Generate dates every quarter
  - Yearly – Generate dates once per year
  - Instantaneous – Generate a single event on the current value date
  - 5 years – Generate dates every five years
  Timefrrame specifies the number of dates to generate for the selected frequency.
  Note:
  - The system processes frequency entries in the order they are added. After selecting a frequency (for example, Monthly), you cannot add the same or a lower frequency (such as Daily) later. To change the order, delete the entry and re-add it.
  - If you select Instantaneous:
    
    The timeframe is fixed at 1.
    
    The start date is automatically set to the reference date.
    
    You can define multiple combinations of timeframes and frequencies instead of a single timeframe. Each combination is stored in the Variable Frequency field as an array of JSON objects, where each object specifies a frequency and its corresponding timeframe.
    
    The system generates scenario dates sequentially based on the combinations you add.
    
    These generated dates are used to populate the variable grid for the scenario.
3. Select a base reference date (or the date from which the data is available) from the Base Reference Date field.
4. Select a current value date to start the calculations or predictions on in the Current Value Date field.
5. Select the scenario start date in the Scenario Start Date field.
6. Select the first forecast date in the First Forecast Date field.
Select the required configurations for this scenario using the Reference Configuration Details field and click Continue. Do either of the following:
If you select Configuration Analysis, do the following:
1. In the Select Configuration Analysis page that opens, select the analysis for your configuration.
2. Click Select.
If you select Project, do the following:
1. In the Select Project page that opens, select the project for your configuration.
  The base reference date is automatically populated from the reference date in the selected project. You can update the base reference date later, if required.
2. Click Select.
Note:
If the scenario references a configuration, the variables and dimension mappings are automatically populated according to the analysis configuration. You can update the selection on the Variable Selection page.
In the Variables section, all the variables that are created and approved in this workspace are listed.
If you have selected an analysis configuration or project, then the variables are preselected. Review the selection and click Continue.

Note:
In the Variables section, review the auto-populated variables (if a project or analysis configuration is referenced). You can add or remove variables as needed. If no project or analysis configuration is referenced, you can select variables freely.

Note:
Selecting a variable for a scenario is a mandatory step.
In the Map Dimensions section, if dimensions are not applicable for the selected variables, then the Map Status is listed as NA. Click Continue.
If dimensions are applicable for the selected variables, then the Map Status is listed as NOT MAPPED. Map the dimensions and then click Continue.
To map the dimensions,:
1. Click More Actions and select Map Dimensions.
  The Variable Dimension Mapping page is displayed.
2. Do either of the following:and so.
  1. To create a new mapping:
    1. Select Create New.
    2. In the Variable Dimension Mapping page, select the dimension in the Dimensions Selection field and click Next.
    3. Select the desired values in the Members Selections field and click Next.
    4. Select the desired values in the Dimension Mapping Combinations field and click Save.
  2. To copy a dimension from an existing scenario:
    1. Select Copy From Scenario.
    2. On the Copy Dimension Mapping from Scenario page, select the associated scenario, and click Next.
  3. To copy a dimension from an existing analysis configuration:
    1. Select Copy From Analysis Configuration.
    2. In the Copy Dimension Mapping from Analysis Configuration field, select the analysis configuration, and click Next.
    Note:
    The dimensions, bands, and combinations are automatically selected. You can manually select additional items, and then click Next.
3. To save this selection, click Save.
4. Click Continue.
In Variable Pathways section, add the variable values, and then click Continue.
You can add variable values from any one of the two methods:
- .From the user interface click Actions against each variable, select the shock type and provide the stress values
- Export the excel sheet by selecting the variables, fill the values and import that excel sheet.
Note:
For Direct Ingestion type of variable, you do not need to provide shock types because the data is expected to already include the perturbed values.

The status remains Pending until you complete entering the shock values for a variable and all validations pass. After completion, the status changes to Completed.

(Optional) Click the variable to view the graphical representation for the shock values provided in the previous step.

The graph is displayed which indicate the variations caused due to each shock value introduced in the scenario. Each variable offers filters tailored to its type:

Table 6-4 Graph Types, Filters, and Display Behavior by Variable Type

Variable Type	Graph Type	X-axis	Y-axis	Display Behavior	Filters	Default Filters
Numerical Variables
Micro-Macro and Exchange Variables	Line graph	Periods	Values	Shows a single line with one row of data if no dimensions are added. With dimensions, multiple lines appear for each dimension combination.	Periods and dimensions	First dimension combination
CCF, LGD, and PD Term Structure Variables	Curve graph	Term points	Values		Hierarchy data and periods	First hierarchy and period
IRC Term Structure Variable	Curve graph	Term points	Values		Periods	First period
Other Granular Variables	Line graph	Periods	Values	Shows a single line with one row of data if no dimensions are added. With dimensions, multiple lines appear for each dimension combination.	Periods and dimensions	First dimension combination
Categorical Variables:
Ordinal Variables	Curve graph	Periods	Computed ratings		Source Code, Short/Long Term, rating + dimension combination, and periods	First source code, first short/long term, and first rating

Now, when users enter shock values and request a graph, the system dynamically generates the computed grid. A default current value of 100 is assumed for each dimension to illustrate how the data shifts in response to the shocks

For categorical variables, ratings are computed based on source code and short or long term combinations. As a result, you cannot view all ratings simultaneously. Instead, select a specific combination of source code and short or long term to display the relevant ratings.

For Change of Class shock types, the graph is unavailable, and the source code and short or long term filters are not applicable during data input, so these options are also not displayed in the graph.

Note:

Graphs are unavailable for categorical variables with the Change of Class shock type and for metrics variables.

In the Scenario Narrative page that opens, provide the details about the scenario you are creating. and click Continue.
Note:
- Select Auto-Generate Narrative to add detailed description of the scenario.
- For more information, see the Document Management section.
Review the inputs on this page and address any validation messages displayed.
- Critical validations must be resolved before you can submit the scenario.
- Non-critical validations can be left unresolved, but they may impact results.
When ready, do one of the following:
- Click Save to save the scenario as a draft.
- Click Submit For Review to send the scenario for review and approval. Submission is allowed only when no critical validations remain.
For more information about sending objects for review and approval, see the Workflow for STSA Objects section.

Note:
STSA notifies users when underlying metadata changes. These alerts help ensure that scenarios and configurations remain valid.