87. Institutions should use reverse stress testing as a regular risk management tool in order to …

Institutions should use reverse stress testing as a regular risk management tool in order to improve their awareness of current and potential vulnerabilities, providing added value to institutions’ risk management. The principle of proportionality applies to all aspects of the use of reverse stress testing. Institutions should also consider that the pre-defined outcome of reverse stress testing can be produced by circumstances other than the circumstance analysed in the stress test.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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