Stress Testing Banks (FRM Part 2 2023 – Book 3 – Chapter 15)

*AnalystPrep is a GARP-Approved Exam Preparation Provider for FRM Exams*

After completing this reading, you should be able to:
- Describe the historical evolution of the stress testing process and compare methodologies of historical EBA, CCAR, and SCAP stress tests.
- Explain challenges in designing stress test scenarios, including the problem of coherence in modeling risk factors.
- Explain challenges in modeling a bank's revenues, losses, and its balance sheet over a stress test horizon period.

[Justnthyme]

who is that pouring cereal in back 9:30 lol