Stress testing sets expectations and drives tool and data development rather than predicting risks

Robust granular sector specific data is critical for effectiveness in a complex macroeconomic environment

Analysis must include sectoral dynamics supply chain vulnerabilities and interconnected risks beyond basic indicators

Geopolitical risks are unpredictable and hard to model but can cause rapid systemic impacts requiring deep uncertainty scenarios

Climate stress tests reveal vulnerabilities and encourage mitigation and transition strategies

Need to balance top down regulatory testing with bottom up business line risk insights

AI improves modeling efficiency but scenario design needs human insight for coherence

Embedding stress testing into strategy builds resilience across plausible futures