This course introduces the concept of Scenario Assumption Validation within the Credit Monitoring & Portfolio Surveillance framework. It focuses on evaluating the reliability and appropriateness of assumptions used in stress testing and scenario analysis to ensure that risk assessments are robust and realistic.
Learners will explore key assessment dimensions such as control lapses, early warning signal identification, risk trend analysis, and proactive portfolio risk management, with an emphasis on independent validation and well-documented rationale. The course also distinguishes scenario assumption validation from broader credit management processes, highlighting its specific role in strengthening the credibility and accuracy of scenario-based risk evaluations.
By the end of the course, participants will understand how to apply scenario assumption validation in practice, particularly within Stress Testing and Scenario Analysis, including setting portfolio limits, governing exception criteria, driving strategic alignment across the Credit Monitoring & Portfolio Surveillance function, and guiding escalation to the credit committee where required.