12. Institutions should have in place a stress testing programme that should cover at least the following:

a) the types of stress testing and their main objectives and applications;

b) the frequency of the different stress testing exercises;

c) the internal governance arrangements including well-defined, transparent and consistent lines of responsibility and procedures;

d) in the case of a group, the scope of the entities included and the coverage (e.g. risk types and portfolios) of the stress tests;

e) the relevant data infrastructure;

f) the methodological details, including models used and possible links between liquidity stress tests and solvency stress tests, namely the magnitude of such dynamic interactions and the capture of feedback effects;

g) the range of assumptions, including business and managerial, and remedial actions envisaged for each stress test.

13. Parent institutions in a Member State and EU parent institutions should also develop a group stress testing programme to be approved and monitored by the management body and implemented by their senior management in the context of their centralised risk management policy. A group stress testing programme should include and address, to the extent appropriate, all institutions subject to prudential consolidation.