Stress Testing: The Who, What, When, and Why
While mega banks have stringent and detailed stress testing requirements, many community banks and credit unions have received little prescriptive guidance on how to effectively stress test the loan portfolio. While stress testing is widely accepted and purported by examiners to be a critical component of a “sound risk management framework”, expectations and use cases for stress tests aren’t obvious.
In this whitepaper, Abrigo outlines how financial institutions can get started with successful stress testing programs and use the information for better decision making at the executive and board levels.
Download it to learn:
- Why stress testing is a necessity for banks
- What are the different types of stress tests
- How do you stratify a portfolio by key concentrations