Where the Cycle Gets Expensive
External capital-modeling consultant engagements at $5M–$40M per year are largely driven by the throughput demands of stress-testing season: running PPNR and loss models across Supervisory and Adverse scenarios, compiling model-risk documentation per SR 11-7, and generating draft FR Y-14A schedules. Moody's Analytics RiskCalc and internal FR Y-14A Jira tickets hold the workflows and historical run patterns — but extracting that institutional knowledge and applying it systematically requires staffing that scales with submission deadlines.
How Agents Accelerate the Submission Cycle
An AI Labor Company agent mines stress-scenario data-pull and loss-projection modeling workflows from capital-planning Jira tickets and Moody's Analytics RiskCalc run histories. Agents auto-run PPNR and loss models across the required scenario set, compile model-risk documentation aligned with SR 11-7 expectations, and generate draft FR Y-14A schedules for review. The Head of Capital Planning approves model outputs before Federal Reserve submission — that approval gate is non-negotiable and hardwired into the workflow. Implementation timelines for an engagement of this complexity run about 20 weeks to full production.
The Business Case: 30% Consultant Spend Reduction
This is a cost play with a meaningful secondary benefit on regulatory risk. Automating the mechanical throughput of the stress-testing cycle — where 35–55% of coordination effort concentrates — reduces the hours that external consultants bill for model execution, documentation assembly, and schedule compilation. Teams typically realize around 30% lower external consultant spend. The less obvious benefit: agents run models consistently across scenarios, reducing the documentation inconsistencies that generate MRA findings and require expensive remediation cycles after submission.
Does the agent modify model assumptions, or only execute models as configured?
The agent executes models based on documented methodology — it does not modify assumptions or change scenario parameters. All model-output approvals, and any changes to assumptions, require Head of Capital Planning sign-off.
How does this interact with model risk management requirements under SR 11-7?
Agents compile SR 11-7 documentation as part of the workflow. The documentation is reviewed and approved by the capital planning team before submission — the agent doesn't bypass model validation or approval processes, it accelerates the documentation assembly that supports them.
Our existing vendor contracts include model licensing. Does this displace that?
No. The agent operates on top of your existing Moody's Analytics and internal tooling — it automates the execution and documentation workflow, not the underlying model infrastructure.