LONDON, February 18, 2021 – Moody’s Analytics today announced that HSBC will be extending its contract and expanding its use of the Moody’s Analytics PFaroe™ DB software, a risk analytics and reporting solution for the defined benefit (DB) pensions market.

HSBC began using the PFaroe DB solution in 2009 to manage and measure its DB pension risk across multiple jurisdictions on a single platform, with a particular focus on the Internal Capital Adequacy Assessment Process and stress testing submissions. Now, HSBC will increase its assets under management on the platform, expanding its use from six to 15 territories located across Asia-Pacific, Europe, the Middle East, Africa, Latin America, and North America.

HSBC will also take advantage of the integration of Moody’s Analytics scenario generation capabilities in the PFaroe DB solution.

The expanded use of the PFaroe DB solution will give HSBC a more comprehensive understanding and consistent view of their global risk and allow deeper examination of the risk drivers for the market.

“HSBC has the highest standards of pension risk model requirements and the PFaroe DB solution’s robust, yet flexible framework successfully fits our requirements,” said Andrew Sincock, Head of Pension Modelling and Capital, Group Risk at HSBC. “The extension of our use of the PFaroe DB solution will enable HSBC to continue to meet the obligations regarding the management of our complex pensions.”

Matthew Seymour, Head of Buy-Side Solutions at Moody’s Analytics, added:

“Against a backdrop of market volatility and a greater regulatory focus on larger banks, never has a clear, real-time view of risk been more important. We are pleased to continue to support HSBC in the management of their defined benefit obligations as we have for the last decade.”