FSA urges firms to improve stress testing

The Financial Services Authority’s (FSA) 2007 Financial Risk Outlook (FRO) report calls for firms to improve the stress testing, after it highlighted the greater impact a shock could have, if it were to happen in the next 18 months.

While the FSA's overall outlook for the global economy continues to be benign, the FRO identifies an increasing risk that it will become more unsettled. Key factors include the increasing geopolitical risks, which escalate the probability of an event risk

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