Stress-testing has all too often, in the recent history of regulation, been an after-thought. After post-financial-crisis regulation such as Basel III came into existence, new paradigms are now in order, beyond mere compliance, to better ride the waves in turbulent times. Stress-testing is now part of the competitive edge of banks. It is now, more than ever, critical for bankers to understand and manage their extreme risks properly, through appropriate implementation of stress-testing processes and structures. The task, which nobody so far has found easy, starts by acquiring the data from within banks’ data mazes and processing them into a credible scenario-based report. This includes effectively communicating stress-testing results within financial institutions, getting to a better understanding of the extreme risks and their impact on one’s institution, and taking the appropriate preparatory measures.

We highlight pitfalls and chances of success for stress-testing, to equip participants for adding key value to a financial institution’s risk management structures. It is more than ever crucial to think and act beyond routine risks and to examine with lucid minds extreme risks, beyond the usual defence ‘it will not happen’, or ‘it will not happen again’. We examine a few key scenarios to see how a financial institution can deal with such scenarios without compromising its key strategic objectives and enable every function to thrive in the knowledge that a few possible disasters have been prepared for.

In this webinar, we tackle the main issues linked to managerial stress-testing, as opposed to the regulatory and communication exercise with which the mix-up is quite common. Managerial stress-testing helps risk practitioners to understand and address extreme risk management issues in a post-Basel III world. This webinar helps to ensure that the costly usual stress-testing exercises bring some new understanding and allow banks to better withstand the next disasters to come.

In this webinar, we will cover the methodological differences between regulatory and managerial stress-testing, various methodologies to select and analyse relevant areas of investigation, as well as action plans and internal communication plans to obtain the competitive edge that a stress-testing exercise can bring.