stress testing

Introduction Following the financial crisis, the banks have witnessed unprecedented levels of scrutiny from regulators. When faced with unforgiving public opinion and continuing market volatility, institutions face significant challenges in re-establishing financial strength. To restore credibility institutions have been assigned the task of building upon their stress testing processes and frameworks to deliver greater transparency, [...]

Credit Stress Testing

Stress testing is an integral tool when it comes to risk identification and mitigation. The importance of stress based risk management has been further accentuated of late. With increasing regulatory scrutiny, banks are required to conduct more comprehensive and rigorous stress tests. Stress exercises and tools are now more integrated with the overall risk management framework and are recognised as key component of a more contemporary approach.

Restoring Credibility - The Importance of Stress Testing

Stress based risk management has emerged as one of the foremost priorities for the financial services industry. Having consulted a number of financial institutions, the vast majority cited stress testing as the pivotal objective around which future initiatives will evolve. To this end, banks are heavily focused on implementing more robust and comprehensive infrastructure to facilitate more timely and meaningful results. To meet this objective, institutions must overcome significant challenges owing to the monumental volumes of data involved, varying portfolios across businesses and multiple data sources.