32. Institutions should refine and customise the chosen scenarios based on the objective, scope and …

Institutions should refine and customise the chosen scenarios based on the objective, scope and granularity of the analysis being conducted. For example, when conducting stress tests, institutions could consider relatively short-term scenarios, focusing more on acute physical risks (i.e. sudden materialisation of extreme climate events) than on chronic physical risks (i.e. gradual shift in climate conditions) and with greater emphasis than in longer-term scenarios on the potential negative impacts of a strong disconnect between the environmental regulation agenda, the business cycle and the consumer and market sentiment.

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/