Skip Navigation Links
Stress Testing Compliant with Basel III

Incorporating the lessons learned from the financial crisis in making stress tests effective for financial institutions

18 & 19 March 2013 – Singapore

Why should you attend?

This two day workshop will cover best in class practices for stress testing market, credit and liquidity risk while incorporating lessons learned from the financial crisis of 2007-2008 and complying with the Basel III regulatory demands. It illustrates how to effectively develop, design, manage, and measure a stress testing program within an institution. You will develop a detailed understanding of the differences between stress testing and scenario analysis and learn how to design scenarios that are reasonable and actionable.

Additionally, you will discuss the integration of stress testing within your bank’s enterprise-wide risk management framework, with specific emphasis on strategic planning, risk appetite, capital adequacy, ICAAP, and contingency planning.

Specifically, the workshop will help you design effective stress tests based on suitable scenarios to your respective institutions. During the workshop, you will develop reverse stress testing algorithms and back test them to match economically viable scenarios via in class exercises using excel spreadsheets.

At the end of the two days, you will have new insight into the challenges of stress testing,including reverse stress testing, and how to communicate results to management, the board, and regulators. The information will be offered through a combination of presentations and interactive case studies.

Key Benefits:

  • Getting hands-on cases of international best practices for stress testing
  • Examining how to perform best in class stress tests for liquidity aligned
  • Identify the difference between stress and scenario testing and the benefits of each
  • Develop reasonable tests and stress test reports
  • Use stress testing and scenario analysis to inform capital adequacy and integration into the bank’s ICAAP
  • Explore the challenges in developing a stress testing program including the challenges of developing reverse stress tests, data, correlations, and incorporating results into managing the bank
  • Apply stress testing and scenario analysis in enterprise risk management including integrating into management decision making such as strategic planning, informing risk appetite, and contingency planning
  • Construct a checklist with take-away for immediate application at your institution

Who should attend?

The course will benefit credit risk and market risk professionals involved in designing or executing stress and scenario tests and interpreting the results. It will also be valuable for senior management responsible for considering the response to test results or for discussing the results with regulators.

Above and beyond, the course is useful for internal and external auditors but also to industry regulators who will achieve an insight into the bank internal practices used by leading financial institutions and the usage of stress testing results in daily management

  • Risk Managers and Risk Controllers (Credit and Market Risk)
  • Treasurers
  • CEOs, CFOs, CROs
  • Auditors
  • Industry Regulators
  • Head of Capital Market
  • Head of Global Market
  • Head of Liquidity / ALM