Anonymous shelf assessment
Framework for Stress Testing in Financial Markets
Shelf score 7.5 / 10
On Stress Testing and Scenario Analysis: Applications to Financial Markets · Daniel Tarullo · Federal Reserve
Published 23 March 2026
This work provides a guide to stress testing frameworks with a regulatory focus.
Overview
Published by the Federal Reserve in 2009, this title by Daniel Tarullo addresses critical aspects of risk management and regulation within financial markets. It specifically focuses on stress testing frameworks and their applications, particularly in the context of Comprehensive Capital Analysis and Review (CCAR) and Dodd-Frank Act Stress Test (DFAST). The text serves as a resource for understanding the methodologies and implications of stress testing in regulatory environments.
Targeted primarily at risk managers, compliance officers, and regulators, the book offers insights into the practical applications of scenario analysis in financial institutions. It aims to equip professionals with the necessary tools and knowledge to navigate the complexities of regulatory requirements and risk assessment strategies in the financial sector.
By area & interest
Regulatory Focus
The book emphasises the regulatory aspects of stress testing, making it particularly relevant for professionals involved in compliance and oversight.
Practical Applications
It provides practical insights into the implementation of stress testing frameworks, which are essential for risk management in financial institutions.
Target Audience
Designed for an intermediate reading level, the content is best suited for risk managers and compliance officers who require a deeper understanding of stress testing methodologies.
Basis of this assessment
Assessment based on catalogue description and publication details.
Strengths
The book's strengths lie in its comprehensive coverage of stress testing frameworks and its clear focus on regulatory implications, making it a valuable resource for professionals in the field.
Limitations
However, the policy-oriented focus may limit its appeal to those seeking a broader perspective on risk management beyond regulatory compliance.
Ideal reader
The ideal reader includes risk managers, compliance officers, and regulators looking for a structured guide to stress testing and scenario analysis in financial markets.