Abstract
WHAT IS THE ISSUE?
Stress tests can help to assess the adverse impacts of extreme market moves on portfolios. Different types of stress test have advantages and disadvantages that make them more (or less) appropriate for addressing specific concerns.
WHAT DOES IT MEAN FOR ME?
Appreciating different stress-testing approaches helps you critically appraise proposed test suitability, helping ensure robust outcomes when determining the impact on portfolios and any resulting restructuring.
WHAT CAN I TAKE AWAY?
Protecting portfolios from adverse consequences of extreme events is possible, and, in the process, you will have made an active contribution to fulfilling your fiduciary duties.
Stress tests can help to assess the adverse impacts of extreme market moves on portfolios. Different types of stress test have advantages and disadvantages that make them more (or less) appropriate for addressing specific concerns.
WHAT DOES IT MEAN FOR ME?
Appreciating different stress-testing approaches helps you critically appraise proposed test suitability, helping ensure robust outcomes when determining the impact on portfolios and any resulting restructuring.
WHAT CAN I TAKE AWAY?
Protecting portfolios from adverse consequences of extreme events is possible, and, in the process, you will have made an active contribution to fulfilling your fiduciary duties.
| Original language | English |
|---|---|
| Pages | 66-69 |
| Number of pages | 3 |
| Volume | 25 |
| No. | 3 |
| Specialist publication | STEP Journal |
| Publication status | Published - 1 Apr 2017 |
| Externally published | Yes |
Bibliographical note
Q29ASJC Scopus subject areas
- Economics, Econometrics and Finance(all)