The analysis underpinning the assessment of the financial stability outlook comprises three elements: •  an evaluation of the robustness of the financial system;  •  an identification of plausible and systemically important risks to euro area financial stability;  •  an assessment of the ability of the financial system to cope with shocks in the event that some combination of the identified risks and vulnerabilities were to materialise.
It should be stressed that calling attention to such sources of risk and vulnerability does not mean seeking to identify the most probable outcome. Rather, it entails highlighting potential and plausible downside risks, even if these are unlikely to materialise.