One clear outcome of the financial crisis a decade ago was the realisation that regulators, risk managers and market participants did not have a complete view of institutional or market wide risk exposures.
A result of this has been a global effort towards developing a wide range of stress testing scenarios that are used to evaluate a bank’s capital adequacy and avoid future systemic risk events.
Despite these efforts, the current stress testing environment has several well known shortfalls. This paper explores these gaps and identifies how businesses will need to change in light of Risk 3.0. Download it now to learn how new ways to use data, machine learning and simulation can help financial institutes stay on top of regulatory changes and prepare themselves for all eventualities.