93. Institutions should perform qualitative analyses in developing a well-defined narrative of the …

Institutions should perform qualitative analyses in developing a well-defined narrative of the reverse stress testing and a clear understanding of its feedback and non-linear effects, taking into account the dynamics of risk, and combinations of and interactions between and across risk types. When developing a well-defined narrative, an institution should consider external exogenous events such as economic events, an industry crash, political events, litigation cases and natural events, as well as risk factors such as operational risks, concentration and correlations, reputational risks and loss of confidence, and combinations of these events and factors. The proper engagement of the management body of the institution in the discussions of the narrative is fundamental, taking into account possible specific vulnerabilities and the impact on the whole institution.

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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