Simulating multiple financial risks at once can better predict resilience against future shocksBased on the research of Rui Gao and Stathis TompaidisCould the 2008 financial crisis strike again? A recent Federal Reserve Board stress test found that in a severe recession, large banks could lose $708 billion without imperiling their finances or ability to lend. Stress tests often draw on historical crises or fictional ones that mimic them. The team ran its models against stress tests designed by the Commodity Futures Trading Commission (CFTC). “Choosing Scenarios to Estimate Resilience and Stress Test Financial Institutions” is published in Management Science.