Discussion: Weaknesses in Stress Testing
For this assignment, use your reading, research, and lecture notes develop a 2-3 page paper that addresses the following issues with Stress Testing.
• Explain the purpose of stress testing. Why and how might these weaknesses affect an institution?
• Should stress testing include more severe scenarios?
• Is adequate testing done across markets, institutions, political and geographic interests?
• Is time lacking as a consideration of catastrophic events?
Be sure to proofread your paper for spelling and grammar errors.