GENPRU 1.2.40G and GENPRU 1.2.62G to GENPRU 1.2.78G give guidance
on stress testing and scenario analysis, including on how to choose appropriate scenarios, but the precise scenarios that a firm
chooses to use will depend on the nature of its activities. For the purposes of testing liquidity risk
, however, a firm
should normally consider scenarios based on varying degrees of stress and both firm
-specific and market-wide difficulties. In developing any scenario of extreme market-wide stress that may pose systemic risk, it may be appropriate for a firm
to make assumptions about the likelihood and nature of central bank intervention.