Stress testing incorporating causal dependency [31]

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Bullet points include: Here aim is to assume business model is bust and to identify possible ways in which this might have happened Always some overlay of plausibility, or at least relative plausibility Which we can again navigate more effectively if we have a view on causal linkages Equivalent sanity checks are then: To be mindful of how other (similar) firms have previously run into problems and of generic issues believed to be important by e.g. regulators and industry bodies To understand magnitude of impact if a specific risk did arise To capture our own past experience

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