Stress testing is a means of making risk concentrations more transparent the to the Board and use in the ICAAP.

Our approach is consistent with the FSA requirements for holistic scenarios and reverse-stress testing CP08/24 Stress and scenario testing as well as the liquidity stress testing.

Identification and management of risk concentrations is one of the current priorities of many banks in order to:

1. Set risk appetite statements and link them to practical business measures.
   

2. Assess diversification or concentration effects for minimum regulatory capital purposes.
   

3. Link into the financial forecasts in the ICAAP process.
   

4. Make risk management and in particular, risk management action, more transparent to the Board.
   

Risk Advisors has numerous techniques to perform stress testing across all risk types depending and the data available.