By the end of this training course, trainees will be able to :

-       Define the concept, objectives, and evolution of stress testing in the banking industry.

-       Differentiate between various stress testing techniques including sensitivity analysis, scenario analysis, and reverse stress testing.

-       Explain the relationship between stress testing, Value-at-Risk (VaR), Expected Shortfall, and other quantitative risk measures.

-       Design historical and hypothetical stress testing scenarios for different banking risks.

-       Apply stress testing methodologies to:

-       Credit Risk.

-       Market Risk.

-       Liquidity Risk.

-       Operational Risk.

-       Analyze the impact of stressed macroeconomic and financial variables on bank performance and resilience.

-       Evaluate the effect of stress scenarios on capital adequacy, liquidity positions, earnings, and portfolio quality.

-       Identify stress testing governance requirements, including:

-       Roles of the Board and Senior Management.

-       Policies and procedures.

-       Validation and independent review.

-       Internal audit responsibilities.

-       Interpret stress testing outputs and use them to support strategic decision-making, contingency planning, and risk appetite frameworks.

-       Recognize the limitations, assumptions, and practical challenges associated with stress testing implementation.

-       Risk Management Officers and Analysts.

-       Market Risk and Liquidity Risk Teams.

-       Credit Risk Officers.

-       Treasury and ALM Staff.

-       Internal Audit and Compliance Officers.

-       Financial Stability and Regulatory Reporting Teams.

-       Basel / ICAAP / Stress Testing Specialists.

-       Senior Managers involved in Risk Governance and Capital Planning.