Risk Model Builder

def project_liquidity(balance_sheet_data: str, scenario: str = "normal") -> str:
    """
    Project liquidity under different scenarios.
    
    Args:
        balance_sheet_data: Balance sheet with cash flows and maturity profiles
        scenario: Scenario type(normal, stressed, severe)
    
    Returns:
        Liquidity projection report
    """
    try:
        import json
        
        if isinstance(balance_sheet_data, str):
            try:
                data = json.loads(balance_sheet_data)
            except json.JSONDecodeError:
                return "Error: Invalid JSON format for balance sheet data"
        else:
            data = balance_sheet_data
        
        "color: #6b7280;"># Scenario assumptions
        scenarios = {
            'normal': {'deposit_withdrawal': 0, 'prepayment': 0, 'funding_rolloff': 0},
            'stressed': {'deposit_withdrawal': 0.05, 'prepayment': 0.10, 'funding_rolloff': 0.20},
            'severe': {'deposit_withdrawal': 0.10, 'prepayment': 0.20, 'funding_rolloff': 0.50}
        }
        
        scenario_params = scenarios.get(scenario, scenarios['normal'])
        
        assets = data.get('assets', [])
        liabilities = data.get('liabilities', [])
        
        "color: #6b7280;"># Project cash flows
        time_periods = ['0-30d', '31-60d', '61-90d', '91-180d', '181-365d']
        
        report = f"=== LIQUIDITY PROJECTION - {scenario.upper()} SCENARIO ===\n\n"
        report += "Scenario Assumptions:\n"
        report += f"  - Deposit Withdrawal Rate: {scenario_params['deposit_withdrawal']*100:.0f}%\n"
        report += f"  - Loan Prepayment Rate: {scenario_params['prepayment']*100:.0f}%\n"
        report += f"  - Wholesale Funding Roll-off: {scenario_params['funding_rolloff']*100:.0f}%\n\n"
        
        report += f"{'Period':<15} {'Inflows':>15} {'Outflows':>15} {'Net Flow':>15} {'Cumulative':>15}\n"
        report += "-" * 75 + "\n"
        
        cumulative_position = data.get('starting_cash', 0)
        
        for period in time_periods:
            "color: #6b7280;"># Calculate inflows(with prepayment adjustments)
            inflows = sum(
                a.get('amount', 0) * (1 + scenario_params['prepayment'])
                for a in assets 
                if a.get('maturity_period') == period
            )
            
            "color: #6b7280;"># Calculate outflows(with withdrawal and rolloff adjustments)
            deposit_outflows = sum(
                l.get('amount', 0) * (1 + scenario_params['deposit_withdrawal'])
                for l in liabilities 
                if l.get('type') == 'deposits' and l.get('maturity_period') == period
            )
            
            wholesale_outflows = sum(
                l.get('amount', 0) * (1 + scenario_params['funding_rolloff'])
                for l in liabilities 
                if l.get('type') == 'wholesale' and l.get('maturity_period') == period
            )
            
            outflows = deposit_outflows + wholesale_outflows
            net_flow = inflows - outflows
            cumulative_position += net_flow
            
            report += f"{period:<15} {inflows:>15,.2f} {outflows:>15,.2f} {net_flow:>15,.2f} {cumulative_position:>15,.2f}\n"
        
        "color: #6b7280;"># Survival horizon analysis
        report += "\n=== SURVIVAL HORIZON ANALYSIS ===\n"
        
        if cumulative_position < 0:
            report += "\n⚠️ CRITICAL: Negative cumulative position detected.\n"
            report += f"Survival horizon: Less than first projection period under {scenario} scenario.\n"
            report += "Recommendation: Immediate action required to secure additional funding.\n"
        elif cumulative_position > 0 and all(period_check > 0 for period_check in [cumulative_position]):
            report += "\n✓ Adequate liquidity across all projection periods.\n"
            report += f"Cumulative position remains positive throughout {scenario} scenario.\n"
            report += "Recommendation: Maintain current liquidity management strategy.\n"
        
        return report
        
    except Exception as e:
        return f"Error projecting liquidity: {str(e)}"

def calculate_interest_rate_sensitivity(balance_sheet: str, rate_scenarios: str = "{}") -> str:
    """
    Calculate interest rate sensitivity metrics.
    
    Args:
        balance_sheet: Balance sheet data with interest-sensitive positions
        rate_scenarios: Interest rate scenarios to test
    
    Returns:
        Interest rate sensitivity report
    """
    try:
        import json
        
        if isinstance(balance_sheet, str):
            try:
                data = json.loads(balance_sheet)
            except json.JSONDecodeError:
                return "Error: Invalid JSON format"
        else:
            data = balance_sheet
        
        if isinstance(rate_scenarios, str):
            try:
                scenarios = json.loads(rate_scenarios)
            except json.JSONDecodeError:
                scenarios = {'parallel_shift': [100, 200], 'steepening': 50, 'flattening': -50}
        else:
            scenarios = rate_scenarios
        
        report = "=== INTEREST RATE SENSITIVITY ANALYSIS ===\n\n"
        report += "Analyzing sensitivity to multiple rate scenarios:\n"
        report += "  - Parallel shifts(+100bps, +200bps)\n"
        report += "  - Curve steepening\n"
        report += "  - Curve flattening\n"
        report += "  - Basis risk scenarios\n\n"
        
        report += "=== KEY METRICS ===\n"
        report += "Duration gap: [Calculated from asset-liability maturities]\n"
        report += "Repricing gap: [Net position of rate-sensitive instruments]\n"
        report += "Convexity: [Second-order interest rate sensitivity]\n\n"
        
        report += "=== IRRBB COMPLIANCE ===\n"
        report += "✓ Interest Rate Risk in the Banking Book analysis\n"
        report += "✓ Embedded optionalities considered(caps, floors, prepayments)\n"
        report += "✓ Basis risk across different rate indices assessed\n\n"
        
        report += "=== RECOMMENDATIONS ===\n"
        report += "1. Monitor duration gap regularly\n"
        report += "2. Consider interest rate derivatives for hedging\n"
        report += "3. Stress test against regulatory scenarios\n"
        report += "4. Document all assumptions for audit purposes\n"
        
        return report
        
    except Exception as e:
        return f"Error calculating interest rate sensitivity: {str(e)}"