A new chair set up alongside BNP Paribas
École Polytechnique and BNP Paribas have created the "Stress Test, Risk Management and Financial Steering" Chair, which aims to develop solutions in response to expectations of banking regulators.
Risk assessment tests have been used in the banking sector for several years now. Known as "stress tests", these exercises consist of simulating extreme yet plausible economic and financial conditions in order to study their consequences on banks. They help evaluate how well a financial institution can endure a major shock or incident.
The mission of the "Stress Test, Risk Management and Financial Steering" Chair, signed by École Polytechnique together with BNP Paribas on October 18, 2018, is to develop a leading facility for technical topics related to stress tests, while giving increased exposure and attractive opportunities to new talents.
This Chair was created by the École Polytechnique Center for Applied Mathematics, a leading expert on aspects of uncertainty modeling, computer simulation and data processing, along with the Methodologies and Models for Stress Testing & Financial Synthesis team. The latter is a joint venture created in 2017 by BNP Paribas, whose objective is to oversee capacity development for stress tests and planning.
With the objective of boosting academic work and developments by specialists, the Chair aims to design new methods around stress tests and thus provide better responses to the needs of businesses.