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CRE risk management: Navigating hazards and opportunities

Abrigo

WATCH Takeaway 1 Banks and credit unions are critical sources of capital for businesses in their communities, so how institutions assess CRE credits matters. Takeaway 3 Loan-level stress testing can help assess repricing risk, while capital stress testing helps clarify the impact of CRE loan losses on capital.

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Stress testing revisited to avert risk and improve risk ratings

Abrigo

According to the OCC, institutions that have incorporated stress testing into their planning typically demonstrate an ability to withstand negative market developments more effectively than other financial institutions as a result of these beneficial risk management practices.

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