Stress testing can be viewed as either a regulatory burden or a key component of risk management and capital planning. With the proper tools and investment, stress testing can enable strategic advantage, providing an institution with a clearer picture of performance and the challenges ahead.

Practical Aspects of Stress Testing

This complimentary white paper offers a practical, pragmatic view of how a specific type of stress test, integral to the Federal Reserve's Comprehensive Capital Analysis and Review (CCAR), can be administered and managed. It outlines the critical role that forecasting plays in stress testing and explores:

  • How forecasting is particularly important to the CCAR process.
  • Process management and workflow considerations.
  • Optimal models and methodological framework for the CCAR process.
  • Analysis and dissemination of results.

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