This webinar training on stress testing in financial institutions will depict scenarios, pitfalls to be avoided, and discuss how the choice of the right scenarios can provide good insight into strategic management of a financial institution.
We provide a few pointers at how a stress-testing exercise can be improved by a choice of scenarios, and provide a few criteria for finding and selecting appropriate scenarios.
We indicate how stress-testing can concentrate on the few plausible scenarios that are painful enough, and how to redefined and calibrate these scenarios. We show some sources for scenarios, pitfalls to be avoided, and how the choice of the right scenarios can provide good insights into strategic management of a financial institution.
Why Should You Attend:
Stress-testing as practiced in most institutions is much too often hijacked by regulatory necessity: to improve one’s standing for the authorities, reputational necessities: to reassure the public, and hence can turn into a regulatory exercise, instead of being useful for the top management and for the regulators in charge of systemic risk management.We provide a few pointers at how a stress-testing exercise can be improved by a choice of scenarios, and provide a few criteria for finding and selecting appropriate scenarios.
Learning Objectives:
We try to address, among the challenges of stress-testing, the way to counter the natural tendencies to choose irrelevant or innocuous scenarios. The hurdles can pertain to human interests, as well as in emotional domains: it is seldom easy for individuals or teams to recognize that their proud and successful organization can be deemed mortal by a plausible scenario.We indicate how stress-testing can concentrate on the few plausible scenarios that are painful enough, and how to redefined and calibrate these scenarios. We show some sources for scenarios, pitfalls to be avoided, and how the choice of the right scenarios can provide good insights into strategic management of a financial institution.
Areas Covered in the Webinar:
- Regulatory requirements for stress-testing
- Managerial necessity for stress-testing
- Prerequisites to useful stress-testing scenarios
- The common wrong choices of scenarios
- Sources for scenarios
- Discarding and evaluating scenarios
- Potential hijacks of scenarios
- Using the selected scenarios for strategic risk management
- What an appropriate set of scenarios can bring
Who Will Benefit:
This webinar is intended for professionals in financial institutions, regulatory bodies and advisory firms, as well as individuals with a professional interest in the course material. Specific titles and functions that are of particular relevance include:- Market Risk Management and Analytics
- Traded Market Risk
- Correlation Trading
- Market Risk Modelling
- Credit Risk Modelling
- Risk Methodology
- Risk Analysis
- Model Validation
- Regulatory and Economic Capital
- Implementation of Basel Accords
- Stress-testing
- Risk Internal Audit - Quantitative Analysis
- Finance and Treasury
- Regulation & Compliance
- Financial Institutions Advisory
- Bank Supervision
- Bank Regulation
- Financial Stability and Economic Analysis
Course Provider
Fred Vacelet,
