Reporting & Validation
Reconcile contributions, explain limitations and maintain a reviewable stress-testing process.
Read the stress report before accepting its headline
Audit scope, coverage, sign conventions, denominators, loss bridges, and limitations before interpreting a portfolio stress total.
Explain a scenario loss without inventing a unique cause
Reconcile position and factor contributions, expose interactions and ordering choices, and distinguish attribution from causal explanation.
Stress testing and VaR answer different questions
Distinguish a modeled loss quantile from a conditional scenario result, interpret expected shortfall, and compare risk measures consistently.
Challenge the model, not just its arithmetic
Separate implementation tests from economic validation, construct informative challengers, and document unresolved limitations and permitted uses.
Keep stress-report revisions explainable and reproducible
Assign ownership, preserve report versions, bridge changed results, and prevent corrections or assumption changes from rewriting the record.