Stress Testing 2.0: Better Informed Decisions Through Expanded Scenario-Based Risk Management

Regulatory stress testing requires a significant investment by financial institutions – in technology, skilled people and time. But what’s the best way to go about stress testing, and can banks realize other benefits from this investment? Savvy financial institutions are going beyond simple compliance to gain more effective, consistent analytical processes and the ability to address complex questions from senior management. This paper provides a road map for those who are starting to build – or are rethinking their approach to – their stress testing infrastructure and strategy.