Stress test and Sweeping: Difference between pages

Latest revision as of 06:27, 15 April 2019

Cash management.

Sweeping is a cash concentration technique that involves the physical movement of funds, usually on an automated basis.

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-Stress testing is a form of scenario analysis.
+''Cash management.''
-In stress testing, worst case data are input into a financial model.
+Sweeping is a cash concentration technique that involves the physical movement of funds, usually on an automated basis.
-The idea is to test whether creditworthiness - or any other attribute being modelled - is robust enough to survive the selected 'worst case' scenario.
-Stress testing necessarily involves a significant degree of judgement and subjectivity in identifying the appropriate 'worst case' inputs with which to run the stress test.
-In the banking context, stress testing is routinely carried out on banks to identify the level of risk of their failure.
 == See also ==
-* [[Back test]]
+* [[Cash management]]
-* [[Black swan]]
+* [[Cash concentration]]
-* [[Heuristic]]
+* [[Legal implications of cash pooling structures]]
-* [[Idiosyncratic stress]]
+* [[Overlay bank]]
-* [[Model]]
+* [[Threshold balancing]]
-* [[PRA buffer]]
+* [[Zero balancing]]
-* [[Reverse stress test]]
-* [[Scenario analysis]]
-* [[Sensitivity analysis]]
-* [[Shock]]
-* [[Stress]]
-[[Category:Risk_frameworks]]
+[[Category:Cash_management]]