A key concept in the ease of use in the assumption interface is the concept of assumption inheritance. Simply put, this means accounts will receive their assumptions from the account they subtotal into. This concept works its way all the way up the account structure. At any point in the flow of assumptions new assumptions can be assigned, therefore overriding the inherited values.
In the example displayed below using the Reinvestment Rates assumption in the Advanced Income Shock, an assumption made at the Total Loans account level will provide all accounts that subtotal into Total Loans with the assumption from this account. This provides for a quick and efficient way to make an assumption for a group of accounts that due to their low volume do not require any special attention.
In the example shown, we can see that the account Consumer Loans account displays the red arrow indicating the assumption is derived from the Total Loans account.
Branch Operation
If your institution is setup for Branch operation, the assumption flow concept extends to the branches as well. Assumptions made at the institution level will flow down to the branches to the respective accounts. However, at any point, you may revise the assumptions at the branch level with their own assumption.
Branch Level Assumptions override Institution level assumptions
Any assumptions made at the branch level will always override any assumptions that would be inherited from the institution level. To return back to institution level assumptions, the branch level assumptions have to be deleted.