ERM 2.0-Stress Testing, Capital Planning, Scenario Analysis

The discipline of stress testing, capital planning, and scenario analysis will get a more prominent role in the banks' steering and supervision and will become more embedded within organizational risk management and decision making processes. Financial institutions around the world are establishing dedicated teams to address these challenges and are increasingly looking for an efficient approach and the skilled resources with finance and risk forecasting expertise.


 Course Access:
30-day course access from date of purchase

Self-study, self-paced

Peter Plochan
Principal Risk & Finance Specialist
SAS Institute

~7.5 hours
Plus bonus session


About This Course

Banks around the globe have been swamped with increasing regulatory scrutiny and complexity. In particular, a shift from the traditional backward-looking “What Is” supervision with banks steering towards a more forward-looking “What If” approach can be noted. Satisfying regulatory requirements on historical performance is no longer sufficient, banks have to now spend increasing effort to demonstrate to regulators they can satisfy performance requirements in the future, while considering adverse macroeconomic outlooks. Examples are the recent Pillar 2 and stress testing regulatory initiatives of EBA, PRA, and BIS.

In parallel, the recent pandemic experiences combined with environment of sub-zero interest rates and the emergence of the digital and fintech era have put banks into a difficult situation. They now have to balance the increasing risks with need for more returns, lower costs and the drive to become more agile, and to flexibly respond to these recent regulatory and market developments.

Both these new regulatory initiatives and market trends are asking for much faster decision making, and more agile response from banks in the coming years. The discipline of stress testing, capital planning, and scenario analysis will get a more prominent role in the bank’s steering and supervision, and will become more embedded within their organization risk management and decision making process. New emerging topics such as application of AI models, model risk management, and management of environmental and climate change risks will require a new set of expertise and tools to be dealt with effectively. As a result, financial institutions around the world are establishing dedicated teams to address these challenges and are increasingly looking for an efficient approach and the skilled resources with finance and risk forecasting expertise.

Course Objectives

  • Increase knowledge of the forward-looking activities such as stress testing, ALM, capital planning, ICAAP, and scenario analysis 
  • Understand, analyze, and process the steps, inputs and outputs of these processes
  • Leverage the latest regulatory and business developments
  • Understand the relevant financial and risk fundamentals
  • Maneuver the inter-dependencies and form a holistic view around the ERM processes, with an enterprise-wide mindset (e.g., full balance sheet, P&L, all risks)
  • Increase awareness and efficiencies of your team's dependencies, identify and reduce duplicate tasks and increase cooperation and the speed of processes
  • Learn from tips, case studies, and examples to understand the potential of these processes and achieve business benefits and go beyond the “compliance-only” mindset
  • Raise awareness of the role played in the ERM process through emerging technologies such as AI models, managing model risk, and dealing with environmental and climate change risk 
 Lesson   Topic
 Lesson 1  

Introduction of ERM 2.0 Processes and Drivers

  • Forward-looking Enterprise Risk Management Processes
  • Overview of Business & Regulatory Drivers
 Lesson 2  

Enterprise Stress Testing & Credit Risk 

  • Enterprise Stress Testing Fundamentals and Orchestration of the Processes and People
  • Forecasting and Stress Testing of Credit Risk and IFRS 9
 Lesson 3  

Forecasting, Stress Testing Market & Liquidity Risks 

  • Market Risk Forecasting and Stress Testing
  • Liquidity Risk Forecasting, Stress Testing, and ALM
 Lesson 4  

 Incorporating Operational & Strategic Risks 

  • Forecasting and Stress Testing Operational Risk & Addressing Climate Change Risks and Scenarios
  • Application of AI Models and Addressing Model Risk Management
 Lesson 5  

 Alignment and Roll-out of a Successful Stress Testing & Forward-looking Framework 

  • Alignment and Integration of the Forward-looking Risk and Finance Processes
  • Successful Roll-out of an Integrated Stress Testing & Scenario Analysis Framework

Bonus Session: ERM in Volatile and Uncertain Times

  • Recent industry & regulatory developments
  • Forward-looking Risk Management during crisis period
  • Impact of Climate Change Risk Stress Testing & Scenario Analysis on ERM
  • Increasing relevance of Model Risk Management for ERM
  • Next steps in ERM & future outlook

Who Should Attend

Banking / Insurance representatives from these functional areas will benefit from attending this course:
  • Pillar 2 / ICAAP / ILAAP/ ORSA / Stress Testing / Capital Planning
  • Credit / Market Risk Management
  • Enterprise Risk / Strategic Risk Management / Integrated Risk Management
  • Asset & Liability Management & Liquidity Risk Management
  • Risk / Finance controlling
  • Finance / Budgeting / Regulatory Reporting
  • Risk Modelers & Model Risk Management Professionals
  • Risk Management Consultants, Internal and External Auditors
  • Regulators

About Our Expert

  Peter Plochan is the EMEA Principal Risk Management Advisor at SAS. He helps financial institutions deal with their challenges around finance and risk regulations, enterprise risk management, risk governance, forward-looking risk analysis, stress testing, model risk management, risk modelling, as well as climate change risk management.

Peter has a finance background, a Master’s degree in Banking and is a certified Financial Risk Manager with 14 years of experience in risk management in the financial sector. He has assisted various banking and insurance institutions with large-scale risk management implementations while working both internally and externally as a risk management advisor (PwC).

Since joining SAS in 2014, Peter has served as a global acting domain expert - leveraging the latest trends in risk analytics and technology with his deep risk management and finance expertise.

Peter is also a Risk Management instructor for PRMIA where he develops and delivers virtual learning courses on Model Risk Management and ERM & Stress Testing for the global risk community. Peter regularly speaks and presents at risk events, webinars, and publishes risk management thought leadership materials.

Continued Risk Learning Credits: 9

PRMIA Continued Risk Learning (CRL) programs provide you with the opportunity to formally recognize your professional development, documenting your evolution as a risk professional. Employers can see that you are not static, making you a highly valued, dynamic, and desirable employee. The CRL program is open to all Contributing, Sustaining, and Risk Leader members, providing a convenient and easily accessible way to submit, manage, track and document your activities online through the PRMIA CRL Center. To request CRL credits, please email [email protected].

 Membership Type Price
 Members $ 169.00
 Non Members $ 199.00


Immediate access to the course is granted for 30 days after your purchase. Please complete the course within that time period.

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