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In using the quantify risks, TD also uses various tools and techniques like stress testing, value atrisk (VAR) analysis, limits, and scenario analysis. There are different examples of how TDmeasures risks like liquidity coverage, credit losses, trending analysis, capital adequacy metrics,
5TD Banks Case Studyand peer comparisons. TD also uses and conducts structured Risk and Control Self-Assessment(RCSA) programs for the external and internal events in risk events. This will help to identify,monitor, and escalate risks issues as needed.TD also have the enterprise-wide stress testing involving the application, development, andassessment of different severe but different plausible scenarios involving liquidity, earnings, andcapital of the bank. These scenarios help TD’s board members, senior management, andassociated committees to understand and identify the enterprise-wide risks and vulnerabilitieswill affect TD and its operations. This will help and informs of support risk appetite, liquidityrequirements, capital adequacy, and by providing the framework to assess contagion risks,concertation risks, and emerging risks.
6TD Banks Case StudyReference:Fraser, J. R., Simkins, B. J., & Narvaez, K. (2015). Implementing Enterprise Risk ManagementCase Studies and Best Practices. Hobonken, New Jersey, USA: John Wiley & Sons, Inc.Kreiser, J. (2013, August 23). Five Benefits of Enterprise Risk Management ERM: CLA(CliftonLarsonAllen). Retrieved from-benefits-of-enterprise-risk-management