We will hold regular meetings with the senior management and directors of all high to medium-low impact firms to ensure that we have an up-to-date understanding of where the firms are going and what risks they face. A key point is that a number of our engagement tasks or tools will be forward looking.
We are determined to avoid those unfortunate accidents which tend to occur when trying to drive using only the rear view mirror. Stress tests explicitly model possible adverse future scenarios so that management and regulators are aware of what might happen to a firm were a plausible but severe macro-economic scenario to become reality.