(1) An Authorised Person must use stress and scenario testing to assess the Liquidity Risk it would face in different circumstances.
(2) When using stress and scenario testing in accordance with (1), an Authorised Person must:
(a) use scenarios based on varying degrees of stress and both Authorised Person-specific and market-wide difficulties; and
(b) include a cash-flow projection for each scenario tested, based on reasonable estimates of the impact (both on and off-balance sheet) of that scenario on the Authorised Person's funding needs and sources.
(3) An Authorised Person must frequently review the assumptions used in stress testing scenarios to ensure they remain appropriate.