101. Reverse stress testing should contribute to the recovery plan scenarios by using a dynamic and …

Reverse stress testing should contribute to the recovery plan scenarios by using a dynamic and quantitative scenario narrative, which should cover:

• a) the recovery triggers (i.e. at which point the institution would enact recovery actions in the hypothetical scenario);
• b) the recovery actions required and their expected effectiveness, including the method of assessing that effectiveness (i.e. indicators that should be monitored to conclude that no further action is required);
• c) the appropriate timing and process required for those recovery actions; and
• d) in the case of further stress, points (b) and (c) for the potential additional recovery actions required to address residual risks.

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/