Ultimate access to all questions.
Explanation:
The stress testing review process covers not only the qualitative aspects but also the judgments made by the team conducting the tests. Expert judgment helps ensure that results are presented in the most useful way for decision-making.
No comments yet.
Q.44 A Canadian bank hires a risk consultancy to conduct an independent review of its stress testing procedures. Which of the following actions would least likely be part of the consultancy's mandate?
A
To ensure that the stress tests are based on sound theory.
B
To ensure that limitations and uncertainties are acknowledged.
C
To cover the qualitative aspects of stress tests while leaving the judgmental considerations to the board.
D
To monitor stress testing results regularly.