# How Do Bottom up and Top down Stress Tests Differ in Practice? ▴ Question

**Published:** 2025-08-14
**Categories:** Question

---

![A chrome cross-shaped central processing unit rests on a textured surface, symbolizing a Principal's institutional grade execution engine. It integrates multi-leg options strategies and RFQ protocols, leveraging real-time order book dynamics for optimal price discovery in digital asset derivatives, minimizing slippage and maximizing capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/principals-high-fidelity-rfq-execution-digital-asset-derivatives-hub.jpg)

![A sleek, bimodal digital asset derivatives execution interface, partially open, revealing a dark, secure internal structure. This symbolizes high-fidelity execution and strategic price discovery via institutional RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocols-price-discovery.jpg)

## Concept

The practice of [stress testing](https://prime.greeks.live/area/stress-testing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) within a financial institution represents a foundational capability for navigating uncertainty. It is a quantitative simulation designed to assess the resilience of a bank or the broader financial system to severe, yet plausible, economic shocks. The core function of these exercises is to move beyond historical data and routine forecasts to probe the outer boundaries of an institution’s solvency and liquidity under duress.

At the heart of this discipline lies a fundamental divergence in analytical philosophy, manifesting as two primary operational modes ▴ the [bottom-up approach](https://prime.greeks.live/area/bottom-up-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) and the [top-down approach](https://prime.greeks.live/area/top-down-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite). Understanding their distinctions is prerequisite to constructing a robust and comprehensive risk intelligence framework.

A [bottom-up stress](https://prime.greeks.live/question/what-are-the-key-differences-between-bottom-up-and-top-down-stress-testing-approaches/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) test operates at the most granular level of the institution’s portfolio. This methodology begins with [individual assets](https://prime.greeks.live/question/how-does-a-central-risk-book-alter-the-incentive-structure-for-individual-traders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite), loans, or trading positions. Each instrument is subjected to a prescribed set of shocks ▴ for instance, a specific change in interest rates, a decline in a property’s value, or a credit rating downgrade for a particular borrower. The resulting impact, such as a calculated loan loss or a reduction in market value, is calculated for each discrete component.

Subsequently, these individual impacts are systematically aggregated upwards through business lines and legal entities to produce a consolidated, firm-wide view of potential losses and capital erosion. This process is inherently data-intensive, requiring detailed information on every single exposure within the portfolio.

Conversely, a [top-down stress](https://prime.greeks.live/question/what-are-the-key-differences-between-bottom-up-and-top-down-stress-testing-approaches/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) test initiates its analysis from a macroeconomic perspective. This approach applies shocks not to individual assets but to high-level economic variables such as gross domestic product (GDP) growth, unemployment rates, or broad-based asset price indices. Sophisticated econometric models, often maintained by a central risk management function or a regulatory body, are then used to translate these macroeconomic scenarios directly into an aggregate impact on the institution’s overall balance sheet, income statement, or [regulatory capital](https://prime.greeks.live/area/regulatory-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) ratios. Instead of building a picture from individual bricks, the top-down method projects the effect on the entire structure at once, based on historical correlations and established relationships between the economy and the institution’s aggregate performance.

> A bottom-up test builds a firm-wide risk profile from individual asset-level calculations, whereas a top-down test derives the aggregate impact directly from macroeconomic scenarios.

The practical distinction between these two methodologies is therefore one of starting point and resolution. The bottom-up approach offers a high-fidelity, microscopic view, capturing the unique, idiosyncratic risks embedded within specific parts of the portfolio. Its strength lies in its detail and its ability to identify pockets of vulnerability that might be obscured in a more generalized analysis.

The top-down approach, in contrast, provides a macroscopic perspective, valued for its speed, consistency, and its capacity to model the systemic impact of broad economic narratives without getting mired in the operational complexity of analyzing millions of individual positions. The choice between them, or more often the synthesis of both, defines the character and capability of an institution’s forward-looking [risk management](https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) system.

![A precision-engineered metallic cross-structure, embodying an RFQ engine's market microstructure, showcases diverse elements. One granular arm signifies aggregated liquidity pools and latent liquidity](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-engine-microstructure-for-atomic-settlement.jpg)

![Sharp, transparent, teal structures and a golden line intersect a dark void. This symbolizes market microstructure for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-precision-execution-leveraging-granular-market-microstructure-intelligence.jpg)

## Strategy

The strategic deployment of bottom-up and top-down stress tests within a financial institution is a function of their distinct analytical architectures. Each approach serves a unique set of objectives and informs different layers of decision-making, from granular risk management to high-level corporate strategy. The decision to employ one, the other, or a hybrid model is a direct reflection of the specific questions the institution seeks to answer about its own resilience.

![A sharp, teal blade precisely dissects a cylindrical conduit. This visualizes surgical high-fidelity execution of block trades for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-precision-execution-microstructure.jpg)

## The Granular Lens of Bottom-Up Analysis

The primary strategic value of a bottom-up stress test lies in its diagnostic precision. By building the analysis from the instrument level, it provides business line managers, risk officers, and portfolio managers with a deeply textured understanding of their specific exposures. This approach is indispensable for several key strategic activities:

- **Risk Identification and Mitigation** ▴ It allows managers to pinpoint exactly which sub-portfolios, obligors, or asset classes are the primary drivers of risk under a given scenario. For instance, a bottom-up test on a [mortgage portfolio](https://prime.greeks.live/question/what-are-the-primary-differences-between-portfolio-margining-and-span-for-a-derivatives-portfolio/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) can reveal that loans with a specific combination of high loan-to-value (LTV) ratios and low borrower credit scores in a particular geographic region are disproportionately vulnerable to a housing market downturn. This level of detail enables targeted hedging strategies, adjustments to underwriting standards, or portfolio rebalancing.

- **Capital Allocation** ▴ The granular loss projections derived from bottom-up tests are essential for accurately allocating economic and regulatory capital. Business units with higher risk profiles, as revealed by the stress tests, can be allocated more capital, ensuring that the firm’s resources are aligned with its risk appetite and that each unit is held accountable for the risks it generates.

- **Model Validation** ▴ Bottom-up frameworks serve as a critical platform for validating the internal risk models used for pricing, hedging, and regulatory capital calculations (e.g. internal ratings-based approaches). The detailed outputs allow for a rigorous comparison between the stress test results and the predictions of other internal models, enhancing the overall integrity of the bank’s quantitative infrastructure.

![A smooth, off-white sphere rests within a meticulously engineered digital asset derivatives RFQ platform, featuring distinct teal and dark blue metallic components. This sophisticated market microstructure enables private quotation, high-fidelity execution, and optimized price discovery for institutional block trades, ensuring capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-system-microstructure-core.jpg)

## The Panoramic View of Top-Down Analysis

A top-down stress test, executed by a central authority like a regulator or a firm’s chief risk officer, offers a different strategic advantage. Its strengths are speed, consistency, and the ability to provide a holistic view of the institution’s sensitivity to systemic events.

- **Macroeconomic Scenario Planning** ▴ Top-down models are uniquely suited for exploring the firm-wide implications of complex macroeconomic narratives, such as a global recession, a sovereign debt crisis, or a period of rapid inflation. Senior management and the board of directors can use these results to assess the overall resilience of the current business model and to make high-level strategic decisions, such as entering or exiting certain markets or adjusting the firm’s overall risk appetite.

- **Consistency and Comparability** ▴ When a regulator conducts a top-down stress test across multiple institutions using a consistent methodology, it provides a powerful tool for benchmarking and assessing the stability of the entire financial system. This comparability is difficult to achieve with bottom-up tests, where each bank uses its own internal models and assumptions, making direct comparisons problematic.

- **Rapid Response and Agility** ▴ In a fast-moving crisis, a top-down test can be executed much more quickly than a full-scale bottom-up exercise. This allows for rapid assessment of emerging threats and provides senior leadership with timely information to guide their response.

> The strategic choice is not about which method is superior, but which lens is appropriate for the decision at hand.

![Intersecting abstract geometric planes depict institutional grade RFQ protocols and market microstructure. Speckled surfaces reflect complex order book dynamics and implied volatility, while smooth planes represent high-fidelity execution channels and private quotation systems for digital asset derivatives within a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/07/institutional-rfq-protocols-digital-asset-microstructure-execution.jpg)

## A Comparative Strategic Framework

The following table delineates the strategic positioning of each approach within a financial institution’s risk management framework.

| Attribute | Bottom-Up Stress Test | Top-Down Stress Test |
| --- | --- | --- |
| Primary Strategic Purpose | Detailed risk diagnostics, capital allocation, and model validation. | Firm-wide strategic planning, macroeconomic scenario analysis, and systemic risk assessment. |
| Key Users | Business line managers, portfolio managers, risk officers, internal audit. | Board of directors, senior management, regulators, central banks. |
| Data Requirements | Highly granular (loan-level, security-level, counterparty-level data). | Aggregated (portfolio-level, balance sheet data) and macroeconomic variables. |
| Analytical Strength | Captures idiosyncratic risk and portfolio heterogeneity. | Provides a consistent, comparable, and holistic view of systemic risk. |
| Primary Limitation | Resource-intensive, time-consuming, and can be difficult to aggregate consistently. | May miss specific risk concentrations and relies on stable historical correlations. |

![A macro view of a precision-engineered metallic component, representing the robust core of an Institutional Grade Prime RFQ. Its intricate Market Microstructure design facilitates Digital Asset Derivatives RFQ Protocols, enabling High-Fidelity Execution and Algorithmic Trading for Block Trades, ensuring Capital Efficiency and Best Execution](https://options.greeks.live/wp-content/uploads/2025/07/precision-engineered-core-system-for-institutional-digital-asset-derivatives-rfq-protocol-execution-and-advanced-market-microstructure-optimization.jpg)

## The Hybrid System a Synthesis of Perspectives

In practice, the most sophisticated institutions do not view bottom-up and top-down testing as an either/or proposition. Instead, they construct a hybrid system where the two approaches complement and challenge each other. For example, the results of a quick top-down test can be used to set the severity of a more detailed bottom-up analysis. Conversely, the granular results from a bottom-up test can be used to refine and calibrate the parameters of the top-down models.

This “constrained bottom-up” approach, as some regulators term it, seeks to combine the granular accuracy of bank-specific models with the consistency of a centralized framework. This integrated system provides a more robust and complete picture of the institution’s vulnerabilities, enabling a more effective and holistic strategic response to risk.

![Precision mechanics illustrating institutional RFQ protocol dynamics. Metallic and blue blades symbolize principal's bids and counterparty responses, pivoting on a central matching engine](https://options.greeks.live/wp-content/uploads/2025/07/precision-institutional-digital-asset-derivatives-rfq-execution-engine-microstructure.jpg)

![Polished metallic disks, resembling data platters, with a precise mechanical arm poised for high-fidelity execution. This embodies an institutional digital asset derivatives platform, optimizing RFQ protocol for efficient price discovery, managing market microstructure, and leveraging a Prime RFQ intelligence layer to minimize execution latency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-precision-execution-via-advanced-rfq-protocols-and-prime-os-intelligence-layer-for-optimal-market-microstructure.jpg)

## Execution

The operational execution of stress tests reveals the most profound differences between the bottom-up and top-down paradigms. The choice of methodology dictates the entire workflow, from data acquisition and model selection to the final aggregation and reporting of results. Executing these tests requires distinct technological infrastructures, quantitative skill sets, and governance frameworks.

![A central, precision-engineered component with teal accents rises from a reflective surface. This embodies a high-fidelity RFQ engine, driving optimal price discovery for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-rfq-execution-engine-for-price-discovery.jpg)

## Executing a Bottom-Up Stress Test an Operational Playbook

The execution of a bottom-up stress test is a multi-stage process characterized by its immense data requirements and computational intensity. It is a ground-level campaign to understand risk, asset by asset.

- **Scenario Translation and Parameterization** ▴ A high-level macroeconomic scenario (e.g. a 3% decline in GDP, a 5% increase in unemployment) is received from a central risk function or regulator. This macro narrative must be translated into specific risk factor shocks applicable at the individual asset level. For a mortgage portfolio, this means defining specific paths for regional home price indices and local unemployment rates. For a trading book, it means specifying shocks to individual interest rate curves, credit spreads, and equity prices.

- **Data Aggregation and Cleansing** ▴ The institution must assemble a complete and accurate dataset of all relevant exposures. For a retail credit portfolio, this includes static data (origination date, LTV, borrower FICO score) and dynamic data (current balance, payment status) for every single loan. This data must be cleansed and validated to ensure quality, a significant operational hurdle.

- **Application of Shocks and Model Execution** ▴ The granular risk factor shocks are fed into asset-specific models. A Probability of Default (PD) model for a corporate loan might take the shocked industry-specific default rate as an input. A valuation model for a complex derivative will re-price the instrument using the shocked volatility surfaces. This step is often computationally intensive, requiring significant processing power to run simulations on millions of individual assets.

- **Aggregation of Results** ▴ The outputs from the individual models (e.g. expected loss, mark-to-market loss) are then aggregated. This is a complex process that must follow a clear hierarchy ▴ from individual assets to portfolios, then to business lines, and finally to a firm-wide view. The aggregation methodology must account for netting agreements, collateral, and other risk mitigants to avoid overstating the final loss figure.

- **Reporting and Analysis** ▴ The final aggregated results are presented to business line managers and senior risk committees. The reports must provide not only the total loss figure but also a detailed breakdown of the key risk drivers, highlighting the specific portfolios and exposures contributing most to the stressed outcome.

![A dark, textured module with a glossy top and silver button, featuring active RFQ protocol status indicators. This represents a Principal's operational framework for high-fidelity execution of institutional digital asset derivatives, optimizing atomic settlement and capital efficiency within market microstructure](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-execution-interface-1.jpg)

## Illustrative Bottom-Up Calculation for a Mortgage Portfolio

This table demonstrates a simplified calculation for a small segment of a mortgage portfolio under a stress scenario. The model calculates the stressed Probability of Default (PD) and Loss Given Default (LGD) for each loan based on its specific characteristics and the applied shocks, then derives the Expected Loss (EL).

| Loan ID | Current Balance ($) | Origination LTV (%) | Borrower FICO | Stressed PD (%) | Stressed LGD (%) | Expected Loss ($) |
| --- | --- | --- | --- | --- | --- | --- |
| 1001 | 500,000 | 80 | 750 | 5.0 | 40 | 10,000 |
| 1002 | 750,000 | 95 | 640 | 15.0 | 60 | 67,500 |
| 1003 | 300,000 | 60 | 800 | 2.5 | 30 | 2,250 |
| Total | 1,550,000 | | | | | 79,750 |

![A sleek, metallic algorithmic trading component with a central circular mechanism rests on angular, multi-colored reflective surfaces, symbolizing sophisticated RFQ protocols, aggregated liquidity, and high-fidelity execution within institutional digital asset derivatives market microstructure. This represents the intelligence layer of a Prime RFQ for optimal price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-system-architecture-for-optimal-price-discovery-and-high-fidelity-execution.jpg)

## Executing a Top-Down Stress Test a High-Level Command

The execution of a top-down stress test is a more centralized and econometric exercise. It focuses on historical relationships and aggregate data to derive a swift, high-level impact assessment.

- **Scenario Definition** ▴ The process begins with the definition of a small number of key [macroeconomic variables](https://prime.greeks.live/question/beyond-price-impact-what-other-variables-could-be-included-in-a-more-advanced-leakage-regression-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite) that will be shocked. For a system-wide banking stress test, this typically includes GDP growth, the unemployment rate, and a house price index.

- **Data Collection** ▴ The required data is aggregate in nature. This includes historical time series for the chosen macroeconomic variables and corresponding historical data for the bank’s aggregate performance metrics, such as total net charge-offs, non-performing loan ratios, or pre-provision net revenue.

- **Model Estimation and Calibration** ▴ Econometric models, most commonly regression models, are estimated to quantify the historical relationship between the macro variables (independent variables) and the bank’s performance metrics (dependent variables). For example, a model might estimate that for every 1% increase in the unemployment rate, the bank’s credit card charge-off rate increases by 0.5%.

- **Projection under Stress** ▴ The shocked values of the macroeconomic variables from the stress scenario are plugged into the calibrated models. The models then project the future path of the bank’s performance metrics under the stress scenario.

- **Capital Impact Assessment** ▴ The projected losses and revenue impacts are integrated into a pro-forma financial statement for the institution. This allows for the calculation of the ultimate impact on regulatory capital ratios (e.g. Common Equity Tier 1 ratio), which is the key output of the exercise.

![Abstract, layered spheres symbolize complex market microstructure and liquidity pools. A central reflective conduit represents RFQ protocols enabling block trade execution and precise price discovery for multi-leg spread strategies, ensuring high-fidelity execution within institutional trading of digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine-for-high-fidelity.jpg)

## Illustrative Top-Down Model for Aggregate Credit Losses

This table illustrates a simplified top-down regression model. The model uses macroeconomic variables to project the aggregate net charge-off (NCO) rate for an entire portfolio, such as the bank’s total consumer loans.

| Variable | Coefficient | Baseline Scenario Value | Adverse Scenario Value | Baseline Impact | Adverse Impact |
| --- | --- | --- | --- | --- | --- |
| Intercept | 0.005 | – | – | 0.50% | 0.50% |
| Change in Unemployment Rate | 0.40 | +0.1% | +4.0% | 0.04% | 1.60% |
| Change in GDP Growth | -0.25 | +2.0% | -3.0% | -0.50% | 0.75% |
| Projected NCO Rate | | | | 0.04% | 2.85% |

> The operational divergence is clear ▴ bottom-up is an exercise in granular simulation and aggregation, while top-down is an exercise in macroeconomic modeling and projection.

The practical execution demonstrates that these are not merely two paths to the same destination. They are fundamentally different analytical disciplines. The bottom-up approach requires a vast, well-governed data architecture and an army of asset-specific models.

The top-down approach requires a smaller, more centralized team of skilled econometricians. A truly resilient institution builds the capacity for both, using them in concert to create a risk management system that is both comprehensive in its scope and precise in its detail.

![Intricate metallic mechanisms portray a proprietary matching engine or execution management system. Its robust structure enables algorithmic trading and high-fidelity execution for institutional digital asset derivatives](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-engine-market-microstructure.jpg)

## References

- Global Association of Risk Professionals (GARP). “Stress Testing ▴ A Practical Guide.” 2021.

- Anderson, Richard G. and Kevin L. Kliesen. “Stress-testing banks ▴ a comparative analysis.” Federal Reserve Bank of St. Louis, Working Paper 2016-013A, 2016.

- Open Risk Manual. “Bottom-Up versus Top-Down Stress Test.” Open Risk, 2019.

- Moody’s Analytics. “Stress Testing for Retail Credit Portfolios ▴ A Bottom-Up Approach.” 2013.

- “EBA considers bottom-up stress testing with top-down elements.” Deloitte, 2020.

- Board of Governors of the Federal Reserve System. “Dodd-Frank Act Stress Test 2022 ▴ Supervisory Stress Test Methodology.” 2022.

- Hirtle, Beverly, and Anna Kovner. “Why Do Stress Test Results Differ across Banks?” Federal Reserve Bank of New York Liberty Street Economics, 2019.

- Quagliariello, Mario, ed. “Stress-testing the banking system ▴ methodologies and applications.” Cambridge University Press, 2009.

![Robust metallic structures, one blue-tinted, one teal, intersect, covered in granular water droplets. This depicts a principal's institutional RFQ framework facilitating multi-leg spread execution, aggregating deep liquidity pools for optimal price discovery and high-fidelity atomic settlement of digital asset derivatives for enhanced capital efficiency](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocols-optimized-for-high-fidelity-execution.jpg)

## Reflection

![A sleek, disc-shaped system, with concentric rings and a central dome, visually represents an advanced Principal's operational framework. It integrates RFQ protocols for institutional digital asset derivatives, facilitating liquidity aggregation, high-fidelity execution, and real-time risk management](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-rfq-protocol-engine-digital-asset-derivatives-execution.jpg)

## Calibrating the Institutional Lens

The examination of bottom-up and top-down stress testing methodologies moves the conversation beyond a simple comparison of techniques. It prompts a deeper introspection into the very architecture of an institution’s risk intelligence. The true measure of a stress testing framework is its ability to provide a multidimensional perspective on risk, enabling an organization to pivot from a reactive posture to one of proactive resilience. The granular, high-fidelity view from the bottom-up analysis provides the detailed schematic of the engine’s components, while the top-down perspective offers a satellite view of the terrain ahead.

An institution’s operational maturity can be gauged by how it integrates these two data streams. Are they treated as separate, siloed exercises conducted merely for regulatory compliance? Or are they fused into a dynamic, iterative system where each informs and validates the other?

A framework where top-down macroeconomic insights guide the calibration of bottom-up scenarios, and where granular bottom-up findings expose the hidden vulnerabilities that aggregate models might miss, represents a higher state of operational readiness. This synthesis transforms stress testing from a periodic obligation into a continuous source of strategic advantage, providing a clearer, more robust understanding of the institution’s place within the complex, interconnected financial ecosystem.

![Abstract layers in grey, mint green, and deep blue visualize a Principal's operational framework for institutional digital asset derivatives. The textured grey signifies market microstructure, while the mint green layer with precise slots represents RFQ protocol parameters, enabling high-fidelity execution, private quotation, capital efficiency, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-layered-rfq-protocol-for-digital-asset-execution-system.jpg)

## Glossary

<a href="https://prime.greeks.live/area/stress-testing/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sophisticated metallic apparatus with a prominent circular base and extending precision probes. This represents a high-fidelity execution engine for institutional digital asset derivatives, facilitating RFQ protocol automation, liquidity aggregation, and atomic settlement](https://options.greeks.live/wp-content/uploads/2025/07/precision-engine-for-institutional-digital-asset-derivatives-rfq-protocol.jpg)

## Stress Testing

Meaning ▴ Stress testing is a computational methodology engineered to evaluate the resilience and stability of financial systems, portfolios, or institutions when subjected to severe, yet plausible, adverse market conditions or operational disruptions. </a><a href="https://prime.greeks.live/area/bottom-up-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A multifaceted, luminous abstract structure against a dark void, symbolizing institutional digital asset derivatives market microstructure. Its sharp, reflective surfaces embody high-fidelity execution, RFQ protocol efficiency, and precise price discovery](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-trading-protocol-architecture-optimizing-high-fidelity-rfq-execution-and-latent-liquidity-discovery.jpg)

## Bottom-Up Approach

Meaning ▴ The bottom-up approach systematically constructs a complex system or strategy by commencing with its most granular, fundamental components. </a><a href="https://prime.greeks.live/area/top-down-approach/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A polished metallic needle, crowned with a faceted blue gem, precisely inserted into the central spindle of a reflective digital storage platter. This visually represents the high-fidelity execution of institutional digital asset derivatives via RFQ protocols, enabling atomic settlement and liquidity aggregation through a sophisticated Prime RFQ intelligence layer for optimal price discovery and alpha generation](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-optimization-for-high-fidelity-execution-and-liquidity-aggregation-via-prime-os-intelligence-layer.jpg)

## Top-Down Approach

Meaning ▴ The Top-Down Approach represents a strategic investment methodology that commences with a comprehensive analysis of global macroeconomic conditions, broad market trends, and sector-specific performance before progressively narrowing focus to individual asset classes or specific digital asset derivatives. </a><a href="https://prime.greeks.live/question/how-does-a-central-risk-book-alter-the-incentive-structure-for-individual-traders/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek cream-colored device with a dark blue optical sensor embodies Price Discovery for Digital Asset Derivatives. It signifies High-Fidelity Execution via RFQ Protocols, driven by an Intelligence Layer optimizing Market Microstructure for Algorithmic Trading on a Prime RFQ](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-high-fidelity-execution-engine-optimized-rfq-protocols-prime-os-intelligence-layer.jpg)

## Individual Assets

A Central Risk Book re-architects trader incentives from local P&L seeking to global risk-adjusted performance contribution. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-bottom-up-and-top-down-stress-testing-approaches/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Institutional-grade infrastructure supports a translucent circular interface, displaying real-time market microstructure for digital asset derivatives price discovery. Geometric forms symbolize precise RFQ protocol execution, enabling high-fidelity multi-leg spread trading, optimizing capital efficiency and mitigating systemic risk](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-request-for-quote-protocol-high-fidelity-execution-market-microstructure-intelligence-layer.jpg)

## Bottom-Up Stress

Bottom-up stress tests analyze risk from individual assets up; top-down tests apply macro shocks to the whole firm. </a><a href="https://prime.greeks.live/area/regulatory-capital/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A sleek, dark teal, curved component showcases a silver-grey metallic strip with precise perforations and a central slot. This embodies a Prime RFQ interface for institutional digital asset derivatives, representing high-fidelity execution pathways and FIX Protocol integration](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-protocol-engine.jpg)

## Regulatory Capital

Meaning ▴ Regulatory Capital represents the minimum amount of financial resources a regulated entity, such as a bank or brokerage, must hold to absorb potential losses from its operations and exposures, thereby safeguarding solvency and systemic stability. </a><a href="https://prime.greeks.live/question/what-are-the-key-differences-between-bottom-up-and-top-down-stress-testing-approaches/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![An institutional-grade platform's RFQ protocol interface, with a price discovery engine and precision guides, enables high-fidelity execution for digital asset derivatives. Integrated controls optimize market microstructure and liquidity aggregation within a Principal's operational framework](https://options.greeks.live/wp-content/uploads/2025/07/proprietary-institutional-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-granular-market-microstructure-analysis-for-prime-os.jpg)

## Top-Down Stress

Bottom-up stress tests analyze risk from individual assets up; top-down tests apply macro shocks to the whole firm. </a><a href="https://prime.greeks.live/area/risk-management/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A stylized RFQ protocol engine, featuring a central price discovery mechanism and a high-fidelity execution blade. Translucent blue conduits symbolize atomic settlement pathways for institutional block trades within a Crypto Derivatives OS, ensuring capital efficiency and best execution](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-rfq-execution-for-digital-asset-derivatives.jpg)

## Risk Management

Meaning ▴ Risk Management is the systematic process of identifying, assessing, and mitigating potential financial exposures and operational vulnerabilities within an institutional trading framework. </a><a href="https://prime.greeks.live/question/what-are-the-primary-differences-between-portfolio-margining-and-span-for-a-derivatives-portfolio/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![Luminous blue drops on geometric planes depict institutional Digital Asset Derivatives trading. Large spheres represent atomic settlement of block trades and aggregated inquiries, while smaller droplets signify granular market microstructure data](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocols-driving-high-fidelity-execution-and-optimal-liquidity-discovery.jpg)

## Mortgage Portfolio

Portfolio Margining holistically simulates total portfolio risk for capital efficiency; SPAN uses standardized scenarios to assess component risks. </a><a href="https://prime.greeks.live/question/beyond-price-impact-what-other-variables-could-be-included-in-a-more-advanced-leakage-regression-model/?utm_source=options.greeks.live&utm_medium=referral&utm_campaign=satellite" class="glossary-item-box">
![A modular institutional trading interface displays a precision trackball and granular controls on a teal execution module. Parallel surfaces symbolize layered market microstructure within a Principal's operational framework, enabling high-fidelity execution for digital asset derivatives via RFQ protocols](https://options.greeks.live/wp-content/uploads/2025/07/high-fidelity-institutional-digital-asset-derivatives-rfq-protocol-controls.jpg)

## Macroeconomic Variables

An advanced leakage model expands beyond price impact to quantify adverse selection costs using market structure and order-specific variables. </a>

**Tags:** [Credit Risk Modeling](https://options.greeks.live/area/credit-risk-modeling/), [Capital Adequacy](https://options.greeks.live/area/capital-adequacy/), [CCAR](https://options.greeks.live/area/ccar/), [Financial Resilience](https://options.greeks.live/area/financial-resilience/), [Portfolio Analysis](https://options.greeks.live/area/portfolio-analysis/), [Stress Testing](https://options.greeks.live/area/stress-testing/)	

## Discover More

- 
### [How Does Reverse Stress Testing Enhance a Bank’s Capital Planning Process?](https://options.greeks.live/question/how-does-reverse-stress-testing-enhance-a-banks-capital-planning-process/)
![The image depicts two interconnected modular systems, one ivory and one teal, symbolizing robust institutional grade infrastructure for digital asset derivatives. Glowing internal components represent algorithmic trading engines and intelligence layers facilitating RFQ protocols for high-fidelity execution and atomic settlement of multi-leg spreads.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-platform-1.jpg)

Reverse stress testing enhances capital planning by identifying the specific scenarios that would cause failure, enabling proactive risk mitigation.

- 
### [How Can an Institution Quantitatively Measure Its True Risk Capacity?](https://options.greeks.live/question/how-can-an-institution-quantitatively-measure-its-true-risk-capacity/)
![A centralized intelligence layer for institutional digital asset derivatives, visually connected by translucent RFQ protocols. This Prime RFQ facilitates high-fidelity execution and private quotation for block trades, optimizing liquidity aggregation and price discovery. It ensures capital efficiency and systemic resilience within complex market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-grade-digital-asset-derivatives-rfq-protocol-engine.jpg)

An institution quantifies risk capacity by modeling its total loss-absorption ability, governed by capital, liquidity, and stress resilience.

- 
### [What Are the Implications of Central Clearing for Derivatives Block Trade Risk Management?](https://options.greeks.live/question/what-are-the-implications-of-central-clearing-for-derivatives-block-trade-risk-management/)
![A sleek, angular metallic system, an algorithmic trading engine, features a central intelligence layer. It embodies high-fidelity RFQ protocols, optimizing price discovery and best execution for institutional digital asset derivatives, managing counterparty risk and slippage.](https://options.greeks.live/wp-content/uploads/2025/07/prime-os-digital-asset-derivatives-rfq-engine-for-best-execution.jpg)

Central clearing transforms derivatives block trade risk by mutualizing counterparty exposure, enhancing systemic stability through rigorous margin and default management protocols.

- 
### [In What Ways Can Reverse Stress Testing Uncover Risks That Traditional Models Miss?](https://options.greeks.live/question/in-what-ways-can-reverse-stress-testing-uncover-risks-that-traditional-models-miss/)
![An institutional-grade platform's RFQ protocol interface, with a price discovery engine and precision guides, enables high-fidelity execution for digital asset derivatives. Integrated controls optimize market microstructure and liquidity aggregation within a Principal's operational framework.](https://options.greeks.live/wp-content/uploads/2025/07/proprietary-institutional-digital-asset-derivatives-rfq-protocol-engine-facilitating-high-fidelity-execution-and-granular-market-microstructure-analysis-for-prime-os.jpg)

Reverse stress testing reveals hidden risks by deconstructing failure to identify the unique, complex scenarios that would break a firm.

- 
### [How Can a Firm Model the Financial Value of Reduced Regulatory Risk?](https://options.greeks.live/question/how-can-a-firm-model-the-financial-value-of-reduced-regulatory-risk/)
![Sleek, domed institutional-grade interface with glowing green and blue indicators highlights active RFQ protocols and price discovery. This signifies high-fidelity execution within a Prime RFQ for digital asset derivatives, ensuring real-time liquidity and capital efficiency.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-prime-os-execution-interface.jpg)

A firm models the financial value of reduced regulatory risk by architecting a system to quantify and price avoided costs.

- 
### [How Do Real-Time Risk Aggregation Systems Bolster Institutional Confidence in Crypto Options Trading?](https://options.greeks.live/question/how-do-real-time-risk-aggregation-systems-bolster-institutional-confidence-in-crypto-options-trading/)
![Multi-faceted, reflective geometric form against dark void, symbolizing complex market microstructure of institutional digital asset derivatives. Sharp angles depict high-fidelity execution, price discovery via RFQ protocols, enabling liquidity aggregation for block trades, optimizing capital efficiency through a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/07/digital-asset-derivatives-rfq-protocol-liquidity-aggregation-engine.jpg)

Real-time risk aggregation fortifies institutional confidence in crypto options by providing a precise, holistic view of dynamic exposures.

- 
### [What Are the Key Steps to Implement a Financial Stress Testing Simulation?](https://options.greeks.live/question/what-are-the-key-steps-to-implement-a-financial-stress-testing-simulation/)
![A sophisticated teal and black device with gold accents symbolizes a Principal's operational framework for institutional digital asset derivatives. It represents a high-fidelity execution engine, integrating RFQ protocols for atomic settlement. This intelligence layer optimizes price discovery, managing portfolio margin and ensuring best execution in market microstructure.](https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-protocol-core-engine-for-best-execution.jpg)

Implementing a financial stress testing simulation builds a quantitative early warning system to test institutional resilience against severe shocks.

- 
### [What Are the Specific Risk Management Advantages of a Consolidated Block Trade Data View?](https://options.greeks.live/question/what-are-the-specific-risk-management-advantages-of-a-consolidated-block-trade-data-view/)
![Sleek, metallic, modular hardware with visible circuit elements, symbolizing the market microstructure for institutional digital asset derivatives. This low-latency infrastructure supports RFQ protocols, enabling high-fidelity execution for private quotation and block trade settlement, ensuring capital efficiency within a Prime RFQ.](https://options.greeks.live/wp-content/uploads/2025/08/market-microstructure-engine-for-crypto-derivatives-rfq-protocol.jpg)

A consolidated block trade data view provides comprehensive, real-time risk intelligence, enabling proactive capital deployment and superior execution control.

- 
### [How Does Extreme Value Theory Differ from Traditional Volatility Models?](https://options.greeks.live/question/how-does-extreme-value-theory-differ-from-traditional-volatility-models/)
![A futuristic circular financial instrument with segmented teal and grey zones, centered by a precision indicator, symbolizes an advanced Crypto Derivatives OS. This system facilitates institutional-grade RFQ protocols for block trades, enabling granular price discovery and optimal multi-leg spread execution across diverse liquidity pools. It visually represents the dynamic interplay of market microstructure.](https://options.greeks.live/wp-content/uploads/2025/07/institutional-digital-asset-derivatives-rfq-execution-microstructure-platform.jpg)

Extreme Value Theory models the catastrophic tail-end of a distribution, while traditional models map its probable center.

---

## Raw Schema Data

```json
{
    "@context": "https://schema.org",
    "@type": "BreadcrumbList",
    "itemListElement": [
        {
            "@type": "ListItem",
            "position": 1,
            "name": "Home",
            "item": "https://options.greeks.live"
        },
        {
            "@type": "ListItem",
            "position": 2,
            "name": "Question",
            "item": "https://options.greeks.live/question/"
        },
        {
            "@type": "ListItem",
            "position": 3,
            "name": "How Do Bottom up and Top down Stress Tests Differ in Practice?",
            "item": "https://options.greeks.live/question/how-do-bottom-up-and-top-down-stress-tests-differ-in-practice/"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Organization",
    "@id": "https://greeks.live/#organization",
    "name": "Greeks.Live",
    "url": "https://greeks.live/",
    "description": "Greeks.live is the definitive toolkit for the professional options trader, dedicated to empowering our users with institutional-grade data, advanced analytics, and a comprehensive suite of trading tools designed to provide a decisive edge in the market. Every article and guide published under the Greeks.live name is a product of our deep commitment to data-driven analysis and our mission to support the global trading community.",
    "email": "support@greeks.live",
    "logo": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/07/Greeks.Live-Logo-Icon.svg"
    },
    "hasPart": [
        {
            "@type": "WebSite",
            "name": "About Us",
            "url": "https://about.greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "App Download Page",
            "url": "https://about.greeks.live/#/download/basic_trade"
        },
        {
            "@type": "WebSite",
            "name": "Newcomers' Guide",
            "url": "https://twisty-sign-c8b.notion.site/Guide-for-Greeks-live-X-Deribit-Newbies-5a08a3052822427d800af6eaf3704c8d"
        },
        {
            "@type": "WebSite",
            "name": "Knowledge Base",
            "url": "https://linktr.ee/greeks.live"
        },
        {
            "@type": "WebSite",
            "name": "Option Terminology",
            "url": "https://greekslive.notion.site/88dfc00e7c584d4d8969b6302a79a12f?pvs=4"
        },
        {
            "@type": "WebSite",
            "name": "Terms of Service",
            "url": "https://greeks.live/#/tos"
        },
        {
            "@type": "WebSite",
            "name": "Disclaimer",
            "url": "https://greeks.live/#/disclaimer"
        }
    ],
    "sameAs": [
        "https://x.com/greekslive",
        "https://youtube.com/@greeks_live?si=-KjT0Lkw4WUCI0tD",
        "https://t.me/greekslive_notifications",
        "https://t.me/greekslive",
        "https://pinterest.com/greekslive/"
    ],
    "makesOffer": [
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "RFQ Platform",
                "url": "https://rfq.greeks.live",
                "description": "Execute institutional-grade block trades for crypto options and futures. This platform provides deep, over-the-counter (OTC) liquidity via a professional Request for Quote system.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Lending Tools",
                "url": "https://lend.greeks.live",
                "description": "Manage crypto lending and borrowing activities to earn yield or secure loans. This suite of tools helps users analyze interest rates and manage collateralized debt positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Data Lab",
                "url": "https://greeks.live/#/deribit/tools/datalab/BTC",
                "description": "Analyze historical and real-time options data with advanced metrics. This tool is designed for backtesting strategies and identifying market trends through comprehensive data visualization.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Profit & Loss Analysis (PnL)",
                "url": "https://greeks.live/#/deribit/tools/pnl_analysis",
                "description": "Track and analyze the Profit and Loss (PnL) of your options portfolio. This tool provides detailed performance metrics to help traders evaluate and refine their strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Position Visualization",
                "url": "https://greeks.live/#/deribit/tools/pv/BTC",
                "description": "Visualize complex options positions and their corresponding risk profiles. This tool generates payoff diagrams to help traders intuitively understand potential profit, loss, and exposure.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Options Calculator",
                "url": "https://greeks.live/#/deribit/tools/calculator",
                "description": "Calculate the theoretical price and risk parameters ('the Greeks') of crypto options. An essential tool for pricing new trades and analyzing the sensitivity of existing positions.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live Main Platform",
                "url": "https://greeks.live/",
                "description": "The central hub for the Greeks.live suite of professional cryptocurrency options and derivatives trading tools. Access analytics, manage positions, and explore the ecosystem.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Community Forum",
                "url": "https://t.greeks.live",
                "description": "Join the official Greeks.live community. Connect with other traders, share insights, and receive the latest updates directly from the team.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for Deribit",
                "url": "http://deribit.greeks.live",
                "description": "A dedicated interface for trading on the Deribit exchange. This platform leverages Greeks.live's advanced analytics and tools specifically for users of Deribit's options and futures markets.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "Greeks.live for OKX",
                "url": "http://okx.greeks.live",
                "description": "A dedicated interface for trading on the OKX exchange. This platform integrates Greeks.live's powerful analytics with the OKX marketplace, focusing on its options and derivatives products.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "GLVS.AI Trading Platform",
                "url": "https://www.glvs.ai/",
                "description": "An AI-powered platform for automated crypto options trading. Leverage advanced algorithms and data-driven signals to develop and deploy sophisticated, hands-free trading strategies.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        },
        {
            "@type": "Offer",
            "itemOffered": {
                "@type": "Service",
                "name": "API Testnet & Sandbox",
                "url": "https://test.greeks.live",
                "description": "A dedicated testnet environment for developers to test their API integrations and automated trading strategies. This sandbox allows for full functionality testing without risking real funds.",
                "provider": {
                    "@id": "https://greeks.live/#organization"
                }
            }
        }
    ],
    "subOrganization": [
        {
            "@type": "Organization",
            "name": "GreeksLive HK Co., Limited",
            "email": "support@greeks.live",
            "telephone": "+852-56418949",
            "address": {
                "@type": "PostalAddress",
                "streetAddress": "Unit 11, 27/F, K. Wah Centre, 191 Java Road",
                "addressLocality": "Hong Kong",
                "addressRegion": "North Point",
                "addressCountry": "CN",
                "postalCode": "0000"
            },
            "geo": {
                "@type": "GeoCoordinates",
                "latitude": "22.2932357",
                "longitude": "114.2022026"
            },
            "image": "https://options.greeks.live/wp-content/uploads/2025/08/Wah-Centre-Hong-Kong.jpg"
        }
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "Article",
    "mainEntityOfPage": {
        "@type": "WebPage",
        "@id": "https://options.greeks.live/question/how-do-bottom-up-and-top-down-stress-tests-differ-in-practice/"
    },
    "headline": "How Do Bottom up and Top down Stress Tests Differ in Practice? \u25b4 Question",
    "description": "Bottom-up stress tests aggregate granular, asset-level shocks, while top-down tests apply macro scenarios to firm-wide data. \u25b4 Question",
    "url": "https://options.greeks.live/question/how-do-bottom-up-and-top-down-stress-tests-differ-in-practice/",
    "datePublished": "2025-08-14T01:55:55+00:00",
    "dateModified": "2025-08-14T01:55:57+00:00",
    "articleSection": [
        "Question"
    ],
    "author": {
        "@id": "https://greeks.live/#organization"
    },
    "publisher": {
        "@id": "https://greeks.live/#organization"
    },
    "image": {
        "@type": "ImageObject",
        "url": "https://options.greeks.live/wp-content/uploads/2025/08/institutional-digital-asset-derivatives-rfq-engine-intelligence-layer.jpg",
        "caption": "A sleek, futuristic, multi-lens device with prominent blue-glowing apertures, set against a dark background, embodies a cutting-edge RFQ protocol engine. Designed for institutional digital asset derivatives, it delivers granular market microstructure analysis and high-fidelity execution. This intelligence layer optimizes price discovery, managing aggregated inquiry and dark liquidity while minimizing slippage. It mitigates counterparty risk, ensuring best execution and capital efficiency for multi-leg spread strategies within a Prime RFQ."
    },
    "keywords": [
        "Bottom-Up Approach",
        "Capital Adequacy",
        "CCAR",
        "Credit Risk Modeling",
        "EBA Stress Test",
        "Financial Resilience",
        "Idiosyncratic Risk",
        "Macroeconomic Scenario",
        "Portfolio Analysis",
        "Regulatory Capital",
        "Risk Aggregation",
        "Risk Management",
        "Stress Testing",
        "Top-Down Approach"
    ]
}
```

```json
{
    "@context": "https://schema.org",
    "@type": "WebSite",
    "url": "https://options.greeks.live/",
    "potentialAction": {
        "@type": "SearchAction",
        "target": "https://options.greeks.live/?s=search_term_string",
        "query-input": "required name=search_term_string"
    }
}
```


---

**Original URL:** https://options.greeks.live/question/how-do-bottom-up-and-top-down-stress-tests-differ-in-practice/
