Stress testing complements risk measures by capturing institution wide exposure to unlikely but plausible events, which can be expressed through a range of significant moves across multiple financial markets for e.g. movements in credit spreads, interest rates, equity and commodity prices and foreign exchange rates, as well as adverse changes in counterparty default and recovery rates.

Stress Testing Strategies allows clients:

• Granularity, flexibility and speed of computation
• The ability to analyze potential losses due to “event risk”
• Access to a library of historical events or hypothetical scenarios
• driven by regression analysis for clients to use or modify
• To probe for portfolio-specific vulnerabilities and identify
  sensitivities to specific risk factors (e.g. rise in interest rates or changes in applied volatility)