ST-1.2.6
Responsibilities of the Board include:
(a) Approving the policies and procedures governing the stress testing programme, and ensuring sufficient resources and expertise to effectively implement the programme;
(b) Ensuring that the design of the stress testing programme is consistent with the bank's risk appetite and is appropriate to the nature, scale, complexity of its risk-taking activities and overall business strategy;
(c) Ensuring that views and inputs from relevant functions and departments are considered in the stress testing programme;
(d) Providing constructive challenge on the results of stress tests, scenarios, key assumptions and methodologies used in the stress tests;
(e) Reviewing the appropriateness of management actions proposed by senior management to mitigate potential vulnerabilities, taking into consideration the factors set out in Section ST-1.6;
(f) Approve management actions; and
(g) Commissioning regular stress testing programme in accordance with Section ST-1.7.
July 2018