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A risk manager in the stress testing group at a large bank is presenting at a conference about best practices in stress testing operational risk. The manager compares different types of stress testing approaches, including macroeconomic stress testing, parameter stress testing, and reverse stress testing. The manager then discusses the most suitable applications of each stress testing approach. Which of the following statements is the most appropriate use of the macroeconomic stress testing approach?
A
Assessing potential changes in dependencies between different measurable and immeasurable risks faced by the bank
B
Stress testing the operational resilience of different important business services provided by the bank
C
Analyzing the impact of a three-standard-deviation increase in interest rates on the modeled value of the bank's bond portfolio
D
Determining how severe a financial market crisis would need to be in order to result in the bank's insolvency