IBM: How Is Regulatory Stress-Testing Shaping The Future For Banks?

The landscape

Out of the shortcomings exposed in banks’ traditional risk management processes during the recent global financial crisis, comes the critical need for improvement. Although the list of needed repairs is long and growing, one particular high-profile risk management requirement is subject to additional regulatory burdens and wider scrutiny: enterprise stress-testing. Specifically, it is stress-testing of future capital adequacy and often goes under the category of “forward