14. Use test

The Stressed VaR model should be subject to a use test through use of Stressed VaR output in risk management decisions. Stressed VaR output should be in place as a supplement to the risk management analysis based on the day-to-day output of a VaR model. The results of Stressed VaR should be monitored and reviewed periodically by senior management.

Where Stressed VaR outputs reveal particular vulnerability to a given set of circumstances, prompt steps should be taken to manage those risks appropriately.

Title III – Final Provisions and Implementation