Stress Testing: Challenges
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Stress Testing: Challenges

Intuition Publishing Pty Ltd
Updated Aug 26, 2020

The losses of the global financial crisis suggested that the scenarios being run by many institutions were not sufficiently extreme. To address these issues going forward, banks may need to use hypothetical scenarios rather than historical ones and utilize reverse stress testing. Here we look at some of the future challenges institutions face in conducting effective stress testing.

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