Step 2 – Adjustment of recovery options: additional constraining factors

When selecting recovery options appropriate to a specific scenario, institutions should take into account in particular the following additional constraining factors related to the simultaneous or sequential implementation of recovery options:

• a. mutual exclusivity – whether some recovery options are mutually exclusive;
• b. interdependencies – whether activating one recovery option could affect the subsequent or simultaneous implementation of another option;
• c. operational capability to implement a multitude of recovery options simultaneously;
• d. increased reputational effects – whether implementing several recovery options in combination could reduce their impact and lead to impediments or relevant reputational effects;
• e. consequences for their business model or profitability when more than one recovery option that alone does not have a significant impact is applied together or sequentially with others (combined consequences).