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    Scenario-Based Risk Management: Overcoming the Challenges

    As regulatory stress test regimes mature – and stakeholders grow more comfortable with managing testing processes and interpreting results – financial institutions will look to expand their use. The technologies deployed to meet growing regulatory requirements
    can deliver tremendous additional business value, especially for scenario-based risk management.

    However, significant human resource, technical and operational challenges hinder the use of regulatory stress testing technologies for scenario analysis – and stress tests are already straining the capacities of company staff and IT systems. This paper explores how financial institutions can use technology to:

    • Address some of the key challenges of extending enterprise stress testing processes to support scenario-based risk management.
    • Operate much more efficiently.
    • Derive greater business value from their stress testing investments.