CAS Exam 6C Spring 2014, Question 27
Study guide: Exam 6C
OSFI expects insurers to develop a formal stress testing process as part of financial risk management.
Part a (0.5 points)
Define the term "stress testing" as used by OSFI.
Part b (1.5 points)
Describe three general considerations of stress testing programs for insurance companies.
Part c (0.75 points)
Define the term "reverse stress test" and describe how this approach can be used in the DCAT analysis.
Answer this question and see the worked solution