Category: Market Risk
Published: 15 February 2016
When bank management takes a “check the box” approach to stress testing that focuses exclusively on compliance, they miss out on important opportunities to better understand the strengths and weaknesses of their business.
The usefulness of business-specific stress testing depends heavily on how bank staff identify key risks and scenarios, how stakeholders interact, and how they use risk insights to affect and make changes to their firm.
This white paper, which is the second in a two part series, explores best practices gathered from banks that are successfully using bank-specific stress tests to run their business smarter, safer and more profitably.