5.3. Sensitivity analysis

1. Overview

Summary	Regulation
39. In developing scenario analysis, institutions may consider using sensitivity analysis as a …	In developing scenario analysis, institutions may consider using sensitivity analysis as a simpler, practical tool. While less complex than a full scenario analysis, this approach can provide institutions with an estimate of the most material impacts associated with environmental risks.
40. Additionally, institutions may use sensitivity analysis to explore emerging risks (e.g. nature …	Additionally, institutions may use sensitivity analysis to explore emerging risks (e.g. nature, resource scarcity), or very long-term risks (e.g. impacts of the increase in frequency and severity of physical risks in 2050 and beyond). FINAL REPORT ON GUIDELINES ON ENVIRONMENTAL SCENARIO ANALYSIS

Requirements
Source	Requirement

Standards
Source	Requirement