49. For exercises with medium to long term time horizons, a dynamic balance sheet (with or without …

For exercises with medium to long term time horizons, a dynamic balance sheet (with or without constraints) approach could be applied to ensure greater realism, potentially focusing on the main balance sheet items, reflecting changes in portfolio composition (evolving exposures, asset reallocations and risk-mitigating actions in response to ESG-related shocks).

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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