Stress Testing the Loan Portfolio

While the past year has provided a bit more clarity to financial institutions around stress testing requirements and examiner expectations, there are still many questions.

  • Regulatory guidance and expectations
  • Benefits of stress testing for risk management
  • Challenges with data aggregation
  • Differences and synergies between top down and bottom up stress testing
  • Concentration and scenario selection

Mike Lubansky, director of consulting services at Sageworks, reviewed these stress testing details and demonstrated sample outputs and approaches.