Scenario analyses are also a valuable source of information for central banks and supervisors and can feed into stress testing exercises. This enables central banks and supervisors to gauge the risk exposure of individual institutions as well as of the financial system and the economy as a whole.
The Bank also emphasizes that the responsibility of an  BIS central bankers’ speeches  1  institution’s Board and management is to ensure that the institution meets prudential and statutory requirements and has management practices to limit risks to prudent levels.