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FSA proposes a model for stress testing

Regulator’s thematic review suggests a way to embed stress testing into the risk management framework.

Based on a review of 10 large banks, building societies and investment firms, the UK regulator has outlined a model to incorporate stress testing throughout an institution’s risk management framework, ensuring the engagement of senior managers.

The Financial Services Authority’s assessment of the firms’ ‘Comprehensive Approach’ reviewed risk appetite, the engagement of senior managers

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