Stress testing and scenario analysis need to be established as truly effective management tools and should be integrated and standardized across business lines, types of risk and asset classes. 11  8  Group of Thirty, “Toward Effective Governance of Financial Institution”. BIS central bankers’ speeches  VII.
Redesigning of regulations impact  A large scale overhaul of the regulatory framework has been undertaken to plug the gaps in regulation observed during the crisis and also to make the financial system more resilient. The new set of regulations, popularly called Basel III, seeks to address both firm specific and broader systemic risk.