The rules and guidance provided shall help to make the planning and administration of IORP stress test exercises more efficient, while providing for sufficient room to tailor the analytical tools to the specific objectives of the exercise at hand.
The European Insurance and Occupational Pensions Authority (EIOPA)
published today a methodological framework for stress-testing IORPs
(Institutions for Occupational Retirement Provision) which presents a
set of standard approaches, practical rules and possible methodologies
to support the design phase and the management of future IORP stress
test exercises.
The methodological framework serves as a reference point and toolbox
from which appropriate approaches can be developed and custom-fitted,
bearing in mind the specificities of the individual exercise in
question.
In particular, the methodological framework for stress-testing IORPs sets out:
- Horizontal approaches and types of analysis that
can be applied to all types of IORPs and schemes within the divergent
European occupational pension frameworks;
- A toolbox approach to choose the most relevant set
of analyses to be employed and further adjusted to the objective of the
individual exercise in a proportionate manner;
- Approaches to address new and emerging risks, particularly environmental risks.
Background
The stress-testing of financial institutions has evolved considerably
over the last few years and has become a core tool for supervisors to
identify and assess risks and vulnerabilities in the financial system.
EIOPA is mandated to conduct regular EU-wide stress test exercises for
the European IORP sector, in collaboration with the European Systemic
Risk Board.
Full paper
EIOPA
© EIOPA
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