Stress-testing is known as a simulation technique which is often used within the banking industry. It is used on asset and liability portfolio to determine their reactions to different financial institutions. In addition, it is used to gauge how certain stressors will affect an organization, industry or specific portfolio. It is usually computer-generated simulation models that test hypothetical scenarios; however, highly customized stress testing methodology is also often utilized.
Stress-testing is considered as a useful method to determine how a portfolio will fare during a period of financial crisis. It is also most commonly used by the financial professionals for regulatory reporting and portfolio risk management. In investment portfolio management, stress testing is also commonly used for determining portfolio risk and setting hedging strategies to mitigate losses.
This highly interactive workshop, over 2 days, is intended as a combination of presentation of the state of the art within stress-testing, friendly confrontation of various views on the topic, organised discussions with peers on given topics relevant to the audience, and performance of case studies with short oral presentations by the participants.
Key benefits of attending this workshop
- GAIN practical insights of what it takes for a bank to set up a sensible and compliant framework for managing extreme risks
- UNDERSTAND the interactions between banks and their regulators, for day-to-day risks as well as for extreme risks
- MASTER an international perspective of risk management and regulation
- PROBE an understanding of the imperative for risk management departments of banks to properly manage their tail risks, in the light of past events and of events to come
- ANALYZE factors of the 2007 crisis and what components could happen again
- ENRICH course participants with tools for risk managers to counterbalance the overriding power of front offices
- SHARPEN participants’ understanding of the interactions between risk takers,
Who Should Attend?
Managing Directors, CROs, CFOs and Managers of:
- Risk Management
- Credit Risk
- Market Risk
- Liquidity Risk
- Basel II/III
- Risk Analysis and Research
- Risk Portfolio Management and Modeling
- Counterparty Credit Risk
- Risk Reporting, Policy and Forecasting
- Bank Treasurers
Why you should Attend?
Risk management for financial institutions is now being formalized in most countries, through global accords from which Basel III is the most topical. Such body of regulatory texts is now setting the landscape for the competition between banks for years to come, and imposing risk managers within decision-making bodies of banks. It is now, more than ever, critical for banks to master their risk processes. It is as well critical for most bankers to master what it takes for a bank to manage their risks properly, including extreme risks, through appropriate implementation of stress-testing structures. This course addresses these issues, and helps risk practitioners to understand risk management in a post-Basel III world.