34. The choice of the time horizon should be aligned with the intended objective of the exercise: ▪ …

The choice of the time horizon should be aligned with the intended objective of the exercise:

• ▪ When assessing financial resilience to adverse but plausible shocks, a short-term horizon (e.g. up to 5 years) should be used, in line with traditional stress testing practices;
• ▪ When assessing the resilience of financial entities ’ business model and strategy a longer-term horizon (at least 10 years, depending on the business activity and in line with financial entities’ long -term commitments) should be adopted.

Scenario design

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/