It also helps identify the limits of our knowledge. For scenario analysis, we would anticipate long time horizons, substantial uncertainty, the use of qualitative elements, and reliance on external data and models. To capture the potential for complex interactions across the financial system, such scenario analysis would consider the effects on bank and nonbank financial intermediaries and financial markets broadly.
We are informing ourselves about the scenario analysis work under way by policymakers in foreign jurisdictions, such as by the European Central Bank and the Bank of England, as well as the scenarios developed by the Network of Central Banks and Supervisors for Greening the Financial System (NGFS). 17  16  7.