19. It should be noted that general risk management principles, as stipulated in the CEBS High-level principles for risk management, [CEBS High level principles for risk management published on 16 February 2010 (see http://www.c-ebs.org/documents/Publications/Standards---Guidelines/2010/Riskmanagement/HighLevelprinciplesonriskmanagement.aspx)] apply fully to the governance and oversight of stress testing programmes. In this section CEBS elaborates on these high-level principles with respect to their application to stress testing.

 Guideline 1. The management body [The term 'Management body' as defined in Article 11 of the CRD should be understood to embrace different structures, such as unitary and dual board structures and not any particular board structure. The management body represents the top management level of an institution, and senior management (which is not defined in the CRD) should be understood to represent the level of management below the management body (see also CEBS Guidelines on the Application of the Supervisory Review Process under Pillar 2 (GL03).] has ultimate responsibility for the overall stress testing programme of the institution. Its engagement is essential for the effective operation of stress testing. The management body should be able to understand the impact of stress events on the overall risk profile of the institution.