1. The following annexes illustrate some practices in relation to stress testing in individual risk areas with the aim of enhancing risk management and capital planning processes. These examples should not be considered as an exhaustive list of practices. They do not intend to duplicate or propose new regulatory requirements affecting capital or liquidity regimes, and they acknowledge that there is no one way of setting up stress testing practices, but rather different ways that fit in with each institution's approach to the management of risks. Some of the practices discussed in the annexes are applicable to all institutions, whereas others are related specifically to the institutions using advanced approaches for the calculation of regulatory capital requirement (internal market risk models, IRBA and AMA).

2. Each annex is divided into three sections: (i) an introduction, (ii) practices applicable to all institutions and (iii) practices applicable to institutions using advanced models. Bearing in mind the principle of proportionality, stress tests are conducted by institutions with material exposure to any of the following risks. For institutions which are less complex and less exposed to a certain risk, the use of simpler forms of analysis may suffice.