PRMIA Exam 8008 Topic 1 Question 17 Discussion

A bank's stress testing programme in relation to firm wide stress tests should document the type, frequency and the purpose of the programme, as well as methodologies for defining scenarios and the remedial actions envisaged. Choice 'b' is therefore a necessary attribute of a robust stress testing programme.

The programme should be supported by a robust systems infrastructure that allows the execution of periodic as well as ad-hoc stress tests at the right level (business unit, as well as firm-wide) at the right level of detail or granularity. Choice 'c' also therefore is a valid choice.

A related element is data quality - without which no stress tests can be be credible.

Therefore all the choices listed are correct and Choice 'd' is the correct answer.