Stress testing incorporating causal dependency [36]

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Bullet points include: Handling them well generally requires us to think outside the box Because they are so rare And to have a really good understanding of underlying business dynamics E.g. what the customers/audience are really focused on and not just what finance academics or regulators might claim or might like them to be focused on And the vulnerabilities these dynamics create E.g. which is riskier: a hedge fund or a cash fund? The hedge fund might lose investors more money but it might be easier for cash fund investors to sue the manager for negligent management of the fund

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