Stress Testing Made Easier - Applying commonly accepted risk management practices to small commercial loan portfolios
Currently, stress testing at banks may be largely guided by regulatory mandates. However, in practice, stress testing is related to the exercise of generating proforma reports that banks have produced for decades for capital planning. This webinar begins with a discussion of the essentials of stress testing and the importance of probabilities of default in rating credit risk. The PayNet AbsolutePD Stress Test Simulator® is presented as a powerful risk management solution that enables banks to generate scenario-based probability of default predictions at the obligor and aggregate levels. This offering from PayNet was designed to support risk measurement under normal and stressed conditions specifically targeting the Small Business loan asset class.
Aired: February 21, 2013