1. When assessing the adequacy of the programme of stress testing referred to in Article 325bi(1), point (g), and Article 325bp(7), point (b), of Regulation (EU) No 575/2013, competent authorities shall verify whether:
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(a)
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the institution reviews scenarios applied as part of the stress testing programme at least annually;
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(b)
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the risk control unit runs the stress test scenarios determined in the stress testing programme frequently and at least every month, and at a higher frequency where the institution has significant trading activities;
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(c)
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the scenarios to be applied as part of the stress testing programme comprise, apart from historically observed or hypothetical scenarios, scenarios resulting from reverse stress testing and ad-hoc scenarios designed to address the relevant specific risk drivers;
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(d)
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the scenarios referred to in point (c) are reviewed at least on an annual basis.
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