Expert Judgment
ST-1.5.15
Conventional bank licensees must ensure qualitative judgment and perspective from relevant experts such as risk controllers, economists, business managers and traders within the bank are incorporated into the stress testing programme to help supplement the mechanical analysis performed by models, assess the impact of extreme events which are difficult to model statistically because, by definition, they occur very rarely and analyse and respond to fast-changing market conditions.July 2018ST-1.5.16
The designated unit responsible for managing and coordinating the stress testing programme should facilitate internal dialogue and debate among the relevant experts and take into account their opinions, as appropriate, in the design, implementation and use of the stress tests.
July 2018
