Forward-Looking Scenario
From Open Risk Manual
Definition
Forward-Looking Scenario is a term used in the context of IFRS 9 and Regulatory Stress Testing. It denotes the use of defined narratives ( scenarios) about the temporal development of key financial and economic factors in the short-to-mid-term future (e.g. 3-5 years).
Usage
In typical usage the risk factors underpinning the scenario are used in conjuction with satellite models to assess the impact on the organization, portfolio etc.
