Stress Testing lets risk managers define adverse scenarios and run them against the portfolio to gauge resilience of provisions, capital and liquidity under shock conditions - a supervisory and ICAAP expectation.
This section covers:
Scenarios — Scenarios defines the stress assumptions applied to the portfolio - shocks such as a jump in PAR, mass restructuring, a sector dow
Runs — Runs executes a chosen stress scenario against the current portfolio and stores the results - the impact on PAR, expected credit l
