Should the institution have written policies and procedures related to its stress testing program?
The board and senior management should ensure that written policies and procedures be put into place to govern the institution’s stress testing program. Policies and procedures should address the frequency of stress testing, its role in the business planning process, and how the stress testing program is integrated into the overall risk management process. They should also specify a clear and central role for the board, or the appropriate committees of the board, and senior management.
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