54. It should be taken into account that: a) risks at the institution-wide level may not be well …

It should be taken into account that:

• a) risks at the institution-wide level may not be well reflected by a simple aggregation of stress tests on portfolios, individual risk areas or business units of the group;
• b) correlations, offsetting of individual exposures and concentrations may lead to either the double counting of risks or to an underestimation of the impact of stressed risk factors; and
• c) specific group risks may arise at the institution-wide level and, therefore, institutions should ensure that all material risks and their corresponding risk factors are also identified at an institution-wide level; when looking at risks at an institution-wide level, particular attention should be paid to risk concentrations on a holistic basis.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/