Scenario Analysis & Stress Testing for Community Banks

Get an overview and learn the benefits for your institution.

In the aftermath of the financial crisis, stress testing has gained increased importance and all banks are strongly encouraged to implement stress testing in their risk management program. In fact, community banks with high concentrations in commercial real estate are required to stress test their portfolios.

This white paper walks you through an overview of the stress testing process and the role of scenario analysis in helping you consider possible future events and outcomes. It is essential for all banks to gain an understanding of this process to consistently measure changing risks.