The capability provides a set of principles and broad expectations of the industry on how scenario testing with third parties should be conducted. The guidance is intended to be used by financial firms of all maturities either as a guidance for building a framework for scenario testing with third parties, or to act as a check point for established programs. Third parties to the financial sector can also benefit from the expectations, standards and reporting requirements laid out in the capability. It outlines good practice on scenario testing including with regards to selection of scenarios, expectations around evidencing resilience during scenario testing, coverage of scenario test reports and incorporation of third party scenario test obligations into contracts.

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