Objectives On completion of this tutorial, you will be able to:

• Recognize the issues and challenges that banks face when conducting stress tests
• Identify the different types of stress test that banks undertake for different risk types
• Recognize the difference between macro and micro stress tests that are undertaken for regulatory purposes

Tutorial Overview While stress testing is a valuable risk management tool, it presents many challenges for banks. This tutorial focuses on these challenges as well as the different types of stress test based on risk type. The tutorial also looks at regulatory stress testing and provides examples of macro and micro stress tests that regulators have conducted. Prerequisite Knowledge Stress Testing - An Introduction Tutorial Level: Intermediate Tutorial Duration: 60 minutes