Team Play: The Context of Economic Capital 249 economic growth, and other asset prices. In reality, many of these risks materi- alized: however, the impact that this would have on financial markets and the confidence in financial institutions was not foreseen. This illustrates that even when a scenario materializes, the impact may still be difficult to estimate. 6.1.5 Summary To summarize, stress tests are a useful tool to identify and assess risks. They often make use of the same risk models that form the basis of economic capital calculations, and in this way they can be seen as an extension of and a comple- ment to economic capital. However, to incorporate the impact of a stress sce- nario in economic capital is not straightforward because the former is a single (hypothetical) realization and the latter is a statistical quantity. More- over, stress tests are as good as the scenarios that underlie them. Identifying relevant and realistic scenarios is a challenge, and even when a scenario mate- rializes, it may manifest itself in unexpected ways and severity. 6.2 Enterprise Risk Management (ERM)