United States

Capital planning and stress testing for financial institutions


Institutions that understand how to balance the demands of meeting business objectives, maintain corporate policies and procedures and be flexible when needed to comply with the requirements of regulatory stress testing are positioned to react to adverse events and optimize capital. Regardless of size, institutions need to implement a risk management framework that includes enhanced capital planning and stress testing. Financial institutions also need to develop a plan around how to deal with the growing need for compliance tasks, so that it doesn’t dilute the value of risk management elsewhere.

This roundtable discussion provides insights on strategies for improved capital planning, how IFRS 9 and CECL impact stress testing and capital planning and how organizations are dealing with associated expenses for endless compliance tasks. Read the discussion.

Submitted with permission by Risk & Compliance newsletter.