definition of plausible adverse sccenario
If the exam asks for the definition of plausible adverse scenario under FCT, would I need to state both percentiles for going concern and solvency scenario? So something like
Scenario of adverse, but plausible, assumptions with impact on financial condition over the forecast period.
Going concern scenario would fall above the 90th percentile on the loss distribution, and solvency scenario falls above the 95th percentile on the loss distribution
Comments
Yup pretty much - I would add that you'd need to say that for a going-concern scenario, you would be between the 90th and 95th percentile
Hello,
The footer in the battletable says that the definition of PAS in the report is outdated. It says "An adverse scenario is plausible if it is between 95th-99th percentile of outcomes"
How is that different from what the answer should be? I was going to state what the above said.
Could you please tell me what correct answer should be?
It should be what the person above mentioned - Right now you would state the definition of a going concern 90th-95th percentile scenario and a solvency concern 95th - 99th percentile