The silver lining: Converting stress-test tools to strategic assets

In response to regulatory mandates, banks in the United States and Europe have developed some of the most robust risk management and stress-testing capabilities in history. The next step is for banks to convert these capabilities into true strategic and business assets.

Regulatory mandates imposed on financial institutions over the past decade have prompted banks to make major investments in financial and managerial resources to develop new capabilities, processes, and infrastructure. While these mandates have resulted in higher capital requirements and compliance costs, our new report, The Silver Lining: Converting Stress-Test Tools to Strategic Assets, explains how banks can use the tools they have developed to make better long-term strategic choices and more informed business decisions that could boost financial performance.