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Purpose of Scenario Testing


The purpose of Scenario Testing is to test the Firm’s ability to remain within impact tolerances in a range of severe but plausible disruption scenarios, focusing on recovery and response arrangements (rather than preventative measures). This should enable them to obtain assurance on the resilience of their important business services and identify where they might need to act to increase their operational resilience.

It is not necessarily the objective of scenario testing to try and prove that, regardless of the scenario, an important business service can always be maintained within tolerance; but rather to understand under which scenarios a firm would not be able to deliver its important business services.

These are the scenarios which would particularly need to be discussed with the Board and Senior Managers to determine whether it would be acceptable or not, in their view, not to be able to recover within Impact Tolerances. Where this is deemed unacceptable, the Board must determine prioritised investment decisions to allow recovery within tolerance to be achieved.


Have you read our responses behind other key questions-in the series?  You can view them by clicking on the links to the pages below: