Prudential Regulation Authority Rulebook

5.1

As part of its obligation under 3.1, a firm must carry out regular scenario testing of its ability to remain within its impact tolerance for each of its important business services in the event of a severe but plausible disruption of its operations.

5.2

In carrying out the scenario testing required by 5.1, a firm must identify an appropriate range of adverse circumstances of varying nature, severity and duration relevant to its business and risk profile and consider the risks to delivery of the firm’s important business services in those circumstances.

5.3

The scenario testing required by 5.1 must be proportionate to the nature, scale and complexity of the firm's activities.