Spring 2018 Q24

cornedovcornedov
in CIA.FCT

Is this question outdated? It looks like the AA applies something similar to reverse stress testing to identify potential FCT scenarios. However, I don't recall seeing anything about analyzing all scenarios that produce a MCT <150% further. In addition, I don't remember seeing anything related to the idea that the AA needs to considering interactions, ripple effects, macro-eco, management actions and regulatory actions and that the AA was wrong not to consider regulatory actions as well. Is this a list item we should remember?

I'm wondering if these are things that still hold/we need to know under the new FCT reading?

Comments

  • Staff-T1Staff-T1

    I don't think it is outdated, no. These are all the things I consider when I actually do my FCTs. These statement you have made are all implicit in the FCT paper. They did not list it out nicely into a single list for you of course so you'd need to go through the whole paper :/

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