ClusterSeven: Data Quality Instrumental to Financial Stress Testing Programmes

Data plays a critical role in the complex process of stress testing, and as most stress tests are conducted wholly or partially via spreadsheet-based models in banks and financial institutions, it’s hardly surprising that the Bank of England’s programme has been criticised over its quality.

Plagued by numerous ‘fatal flaws’, as highlighted in a recent paper published by the Adam Smith Institute, the underlying issues stem back to the poor input of data which ultimately results in calculation