Loan stress testing is an important yet often overlooked strategy for managing risk. During the post-Great Recession economic expansion, many financial institutions ignored portfolio stress testing or treated it as a compliance requirement. This oversight unfortunately affected many financial institutions negatively once the COVID-19 pandemic and the resulting economic disruptions hit.
Listen in as our loan review experts discuss successful loan and portfolio-level stress testing strategies and explore how these tactics can be implemented at your financial institution to help manage portfolio risk in 2021 and beyond. This topic was revisited by our team in August 2021; be sure to check out that recording for new updates on loan stress testing in 2021.