The section of a contingency plan that assesses the impact of potential adverse events on the bank's balance sheet is known as the _________ section?
A) narrative
B) qualitative
C) quantitative
D) summary
E) descriptive

Question

Quizplus · Accepted Answer

The section that assesses the impact of potential adverse events on the bank's balance sheet is known as the quantitative section. This section typically involves stress testing and modeling various scenarios to determine the potential financial impact on the bank's balance sheet. The narrative section provides additional context, while the qualitative section focuses on non-financial impacts such as reputation or operational risks. The summary section provides an overview of the key findings and recommendations from the plan. The descriptive section typically provides background information related to the various risks and potential events that may be addressed in the plan.

The Section of a Contingency Plan That Assesses the Impact