23. The management body should approve [See also Title II, section 1, of the EBA Guidelines on Internal Governance.] the stress testing programme of the institution and oversee its implementation and performance.

24. Without prejudice to the requirement under Article 91(1) of Directive 2013/36/EU [See also Title III, section 8, of the Joint ESMA and EBA Guidelines on the assessment of the suitability of members of the management body and key function holders under Directive 2013/36/EU and Directive 2014/65/EU.] that members of the management body must have at all times sufficient knowledge, skills and experience to perform their duties, the institution should ensure that their management body is able to fully understand the impact of stress events on the overall risk profile of the institution.

25. The management body should understand the material aspects of the stress testing programme to be able to:

(a) actively engage in discussions with stress testing committees of the institutions, where applicable, or with senior management or external consultants involved in stress testing;

(b) challenge key modelling assumptions, the scenario selection and the assumptions underlying the stress tests in general; and