Stress testing / Liquidity and funding risk [11]

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Bullet points include: In the spirit of third type of stress test mentioned earlier Introduced in e.g. CRMPG-III (August 2008) and widely mandated Assume that the firm suffers a large loss of a given quantum Brainstorm how such a loss might occur Hopefully by doing so identify how best to mitigate against such risks Very relevant for regulators Arguably they have a greater interest in what happens if a firm fails than shareholders (who have already been wiped out by then)

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