#5: Portfolio Stress Testing as the Economy Worsens | Rob Newberry

We are zeroing in on stress testing at the portfolio level as the country melts down into the pandemic recession. Consider if you need to up your game, increase stress testing frequency, and better understand how this recession is the same, but different. Rob explains why a 'Reverse' stress test should be your first step and what to do next. Topics discussed in this episode: 2:25 We should be prepared for this pandemic 5:42 A reverse stress test: What and why? 6:34 Dive deeper to segment your analysis 9:52 Frequency of stress testing in this environment 11:54 Understand your concentration risk 14:20 Lower your risk by hedging your portfolio 16:01 What the examiner is worried about   About Rob Newberry: Rob Newberry has over 20 years experience in the financial services industry including 15 years at Wells Fargo in strategic and leadership roles. He is a Senior Advisor at Abrigo, formerly known as Sageworks, FARIN, MainStreet Technologies, and Bankers Toolbox. Rob is instrumental in developing and assisting community financial institutions with Abrigo's various Credit Risk Solutions.   Rob's LinkedIn - https://www.linkedin.com/in/rob-newberry-0199544/   Resources: In this whitepaper, Coronavirus Survival Guide: Loans Under Pressure, we will discuss five simple, proactive strategies that lenders can implement – even during a forbearance period — to ensure as many customers survive and return to financial health as possible. https://www.abrigo.com/whitepapers/coronavirus-survival-guide-loans-under-pressure/   Portfolio Management in Crisis: Coronavirus Implications for Lenders. In this whitepaper, we acknowledge that the challenge for most financial institutions will be how to quantify and document the additional risk they may face. Knowing that there are more questions than answers at this time, lenders can still take specific action during the emergent phase. https://www.abrigo.com/whitepapers/portfolio-management-in-crisis-coronavirus-implications-for-lenders/   Abrigo helps over 2,500 community financial institutions manage risk and drive growth. Learn more and find more resources at https://www.abrigo.com/knowledge-center/   2018 Credit Risk Readiness Report In this study commissioned by Linda Keith CPA, find out what senior lending and credit professionals thought about our readiness at the end of the expansion, before this pandemic began. Are we more ready or less? What can we do it be more ready? Request the report at www.CreditRiskReady.com   Find out more about Linda Keith at: www.LindaKeithCPA.com www.LendersOnlineTraining.com LinkedIn: https://www.linkedin.com/in/lindakeith/