Introduction

In the aftermath of a traffic jam of major crises often labelled as unprecedented, it is no longer the right time to perform stress-tests for pandemics, nearby wars or trade restrictions: the scenario no longer needs to be made up, it is painfully and tragically among us. Given that the history of regulation shows to go through a cycle of neglect, shock, paranoia and neglect again, we can expect a new wave of regulation that will include the last crisis. However, now is also a good time to, above and regulatory requirements and just because it makes sense, pull up every lesson from the last episodes, and to perform stress-testing exercises based upon the new scenarios that now have become more likely to occur. One of the reasons is that the pandemic recovery, if and when it comes, will see new winners and new losers among financial institutions.

Stress-testing is now part of the competitive edge of banks. It is now, more than ever, critical for bankers to understand and manage their extreme risks even in times of crisis recovery, through an appropriate implementation of stress-testing processes and structures. The task, which nobody so far has found easy, starts by acquiring the data from within banks’ data mazes, and processing them into a credible scenario-based report. This includes effectively communicating stress-testing results within financial institutions, getting to a better understanding of the extreme risks and their impact on one’s institution, and taking the appropriate preparatory measures.

We highlight pitfalls and chances of success for stress-testing, to equip participants for adding key value to a financial institution’s risk management structures. It is more than ever crucial to think and act beyond routine risks and to examine with lucid minds extreme risks, beyond the usual excuse ‘it will not happen’, or ‘it will not happen again’. We examine a few key scenarios to see how a financial institution can deal with such scenarios without compromising its key strategic objectives and enable every function to thrive in the knowledge that a few possible disasters have been prepared for.

Areas Covered In The Webinar

• What is stress-testing
• The pandemic: early lessons
• Climate change: forerunners
• International trade disruptions
• Scenarios of potential complications from the pandemic
• A recovery scenario: winners and losers
• Revisiting stress-testing for a post-pandemic world
• The next benefits of stress-testing

Why should you attend?

In this webinar, we tackle the main issues linked to managerial stress-testing in crisis recovery times, as opposed to the regulatory and communication exercise with which the mix-up is quite common. Managerial stress-testing helps risk practitioners to understand and address extreme risk management issues in a post-Basel III world. This webinar helps to ensure that the costly usual stress-testing exercises bring some new understanding and allow banks to better withstand the next dramatic opportunities and the next disasters to come.

In this webinar, we will cover the methodological differences between regulatory and managerial stress-testing, various methodologies to select and analyze relevant areas of investigation, as well as action plans and internal communication plans to obtain the competitive edge that a stress-testing exercise can bring. 

Who Will Benefit

• Risk Methodology
• Credit risk, counterparty Risk
• Market Risk Management and Analytics
• Risk Internal Audit — Quantitative Analysis
• Regulatory and Economic Capital
• Regulation & Compliance 
• Operational Units Managers
• Financial Institutions Advisory 
• Bank Supervision and regulation