How much luck do you need to succeed in stress-tests?

Sept. 20, 2013 - PRLog -- The history of European stress-testing is an interesting one. First were the stress exercises of 2010 and 2011 which were not perceived very well. In 2011, a major bank even passed and then ran into deep trouble, being unable to raise needed cash on financial markets, only three months after the results were published.

Only shortly before they were scheduled to take place, the planned 2013 stress-tests were postponed to 2014.To make things even more interesting, in August 2013 the International Monetary Fund published a working paper called Credibility and Crisis Stress Testing (download here (http://www.imf.org/external/pubs/ft/wp/2013/wp13178.pdf)), which noted, that luck could be also considered as one of the key elements relevant to the results of a stress exercise.

The report reads that successful implementation of any crisis stress test may well require a dose of good fortune, e.g., in areas such as the actual health of banks, the timing of the exercise, market conditions and public receptiveness to the disclosures. Referring to the Federal Reserve Bank of New York's President and CEO William C. Dudley's speech from 2011, it might come as a surprise, or maybe even funny to some. But should it be, really?

What is the opinion of regulators and central and commercial bankers? Stress testing, its various types and techniques, scenario analysis, reverse stress testing and much more will be discussed at the 2nd Annual European Stress Testing for Banks (http://finance.flemingeurope.com/stress-testing?utm_sourc...) conference and workshop, which will take place in Amsterdam this October.

Hear top experts from the International Monetary Fund, European Banking Authority, European Commission (DG ECFIN), the Dutch Central Bank or Bank of England and compare their positions with those of DZ Bank, ING, BRE Bank and many others. Featuring 15 blocks, including 3 case studies on the ways stress-testing is done. We would also like to invite you to the practically oriented half-day workshop. Scenario analysis in stress testing, methodology and best practice will be lead by independent risk consultant Leonard Matz (USA) and will focus on assumption sensitivity, identification of key elements for stress forecasts, and the use of real stress models.

Interested?
DOWNLOAD PROGRAM HERE (http://finance.flemingeurope.com/stress-testing/request-a...).