Live Webinar: 90 Minutes

Assessing the impact of one segment of your loan portfolio does not account for the total potential impact on capital. Learn how to use data from all loan portfolio segments as part of your overall capital adequacy testing and capital planning process.

The purpose of stress testing is to understand how a loan portfolio could react under varying degrees of stress, because it’s better to understand what could happen in stressed times far enough ahead to allow for adjustments to lessen the impact. CRE loans are the most sensitive to increased stress, however this webinar will not only cover CRE loans but also ag, C&I, owner-occupied CRE loans, and consumer loan portfolios. You’ll learn the types of stress factors to assess for each and how to construct realistic, useful, scenarios.

Once the results of the stress tests are known, how can the data be used? The data can highlight the segments – and specific borrowers – that will be most impacted and allow time to adjust your underwriting, risk appetite, and portfolio management to lessen the impact when the next, and inevitable, economic downturn occurs. In addition, this webinar will cover the regulatory expectations based on recent guidance and exams. Many of the concepts in this webinar can be adapted to other parts of your organization as you perform stress analysis in your capital planning process