Operational Risk Stress Testing

01 / The problem

Why the usual approach falls short

Operational stress tests can become spreadsheet exercises when scenarios are not tied to plausible failure paths, response capacity or decisions.

02 / Design logic

The operating principles

1. 01

   Build severe but plausible scenarios from the business model and threat landscape.

2. 02

   Trace operational transmission paths into customer, financial and regulatory impact.

3. 03

   Model management actions with realistic timing and constraints.

4. 04

   Use findings to inform resilience priorities, appetite and contingency planning.

03 / Intended outcome

What better looks like

A more credible view of vulnerability and response capacity, with findings that can guide investment and preparedness.