36. Wherever possible, competent authorities should consider the integration of compound risks …

Wherever possible, competent authorities should consider the integration of compound risks, i.e., the additional impact arising from the simultaneous or successive occurrence of multiple shocks (whether ESG-related or broader macroeconomic shocks). Additionally, and where relevant, they should strive to assess second-round effects, meaning the indirect and amplified consequences that result from the initial ESG shocks, either by incorporating them directly into the scenarios or as a complementary analysis.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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