Date registered: Jan 2008
Mentioned: 0 Post(s)
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Would you agree that in most instances a stress test is too narrowly focused to cover all banking styles? Or is it not narrow enough to downselect the hot points of a business that could lead to collapse? In panic situations such as our current financial situation, emotional decisions instead of business decisions by corporate leaders are big players in a corporate collapse. Very difficult to qualify the vital few drivers that are leading a company to ruin. Once you narrow down the few to focus on you are in the next phase of risk in quantifying or rating the level of threat. Dissecting leadership style is very difficult from the outside looking in.
No matter how well crafted, a stress test is still a dartbaord.