Course Objective

The course intends to provide participants with an in-depth understanding of how stress testing is used to
evaluate the resilience of banks to adverse economic and financial conditions. Stress testing is an essential
tool in banking supervision, helping regulators, financial institutions, and stakeholders understand potential
vulnerabilities and prepare for financial shocks.

Course Outcome

• Understand the Purpose and Principles of Stress Testing
• Design Effective Stress Testing Frameworks
• Identify and Calibrate Relevant Risk Scenarios
• Implement Quantitative Stress Testing Models
• Assess Capital and Liquidity Adequacy Under Stress
• Conduct Top-Down and Bottom-Up Stress Tests
• Interpret and Communicate Stress Test Results
• Use Stress Testing as a Supervisory Tool
• Evaluate System-Wide and Cross-Border Implications
• Align Stress Testing with International Standards

Target Group

Risk managers, analysts and bank examiners