Processes

Perform stress testing

How perform stress testing are reshaped as AGI capability advances.

ProcessesPerform stress testing
Perform stress testing — illustrated

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How the work flows

Trigger: A regulatory mandate or internal risk management schedule dictates the need for a capital adequacy assessment under extreme economic scenarios.

  1. Define baseline and adverse macroeconomic scenarios
  2. Aggregate exposure and financial data across portfolios
  3. Run financial and risk projection models
  4. Calculate capital adequacy and liquidity impacts
  5. Identify vulnerabilities and formulate mitigation plans
  6. Generate and submit final stress testing reports

Outcome: The institution's financial resilience is quantified, and a comprehensive capital impact report is delivered to regulators and executive committees.

Measured by

Scenario Generation Cycle TimeModel Execution TimeReporting Defect RateStress Test Cycle Time