Stress tests that are produced on a regular basis are most evolved in the market risk area. Regular credit risk stress tests tend to be conducted primarily at the level of business lines. More comprehensive firm-wide credit stresses and scenarios often tend to be more ad-hoc.
Finally, the manner in which different risk types interact under stress conditions is still at the frontier of risk management. 2  BIS Review 18/2007  I believe, however, that there are a number of additional practical steps that banks and supervisors can take to improve their understanding of financial intermediaries’ resilience to stress.