5. These guidelines aim to provide common organisational requirements, methodologies and processes for the performance of stress testing by institutions, taking into account capital adequacy and risk management, as part of their risk management processes (‘institutions’ stress testing’).

6. Within the context of groups, these guidelines also apply to institutions participating in a particular stress testing exercise in accordance with the perimeter of application of that particular stress testing exercise and the level of application set out in Articles 108 and 109 of Directive 2013/36/EU.

7. The terms ‘institution’ and ‘institution-specific’ shall be deemed to refer to an institution on a solo basis, or to the parent institution in a given perimeter of application of a particular stress testing exercise or to the parent institution in a Member State or to the EU parent institution on the basis of the relevant consolidated situation as referred to in Article 4(1)(47) of Regulation (EU) No 575/2013.