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Which of the following best describes the relationship between a Contingent Funding Plan (CFP) and Stress Tests in a financial institution's risk management framework?
A
Stress tests are a part of the CFP, used exclusively to determine the amount of funding required during a crisis.
B
A CFP is designed to eliminate the need for stress tests by ensuring sufficient funding under all conditions.
C
Stress tests and CFPS are independent processes, with no influence on each other's outcomes or purposes.
D
Stress tests provide scenarios and identify vulnerabilities that a CFP addresses by outlining actionable steps for potential funding shortages.
