Banks Urgently Upgrade Stress Tests to confront Evolving Risks
Banks are rapidly evolving their stress-testing methodologies, moving beyond simple compliance exercises to proactive strategic tools, according to a new white paper from Moody’s. The shift comes as non-financial risks – notably cybersecurity threats and geopolitical instability – increasingly dominate the risk landscape, demanding more complex and forward-looking assessments of financial resilience.
This comprehensive report details how banks can bolster their stress-testing frameworks to address these emerging challenges while simultaneously meeting stringent regulatory requirements.The ability to effectively anticipate and model the impact of diverse stressors is now critical for informed capital strategy and maintaining appropriate risk appetite. The white paper highlights the operational complexities involved and explores innovative approaches to transform stress-testing into a key asset for growth and resilience.
The report examines the need for banks to move beyond traditional financial risk scenarios and incorporate a wider range of potential disruptions. Leading risk professionals contribute insights, emphasizing the importance of stress-testing as a driver for both stability and strategic advantage in a volatile global surroundings.
Download the full report, Stress-testing for a new age of banking, here: https://www.risk.net/resource/7962216/stress-testing-for-a-new-age-of-banking
