Scenarios library

Understand different scenario types and subtypes when adding a test plan for a business service and resource.

Christine Wong avatar
Written by Christine Wong
Updated over a week ago

💡 Tip: Scenario testing also knowns as scenario analysis.

Scenarios library acts as a repository for generic, real-life severe but plausible scenarios that can be used to design business service-specific scenario tests. The scenarios contained within this library benefit from taking into consideration the known risks and threats affecting your organisation’s important business services, the organisation itself and the wider market.

The tables below will guide you in selecting the appropriate scenario type and subtype when adding a test plan for a business service and resource.

Scenario type 1: Credit Default

Scenario sub type

Description

Counterparty Default

A trading partner or counterparty fails to meet financial obligations.

Loan Portfolio Deterioration

A significant number of loans default due to economic conditions.

Rise in Interest Rates

Increase in interest rates leading to higher borrowing costs.

Scenario type 2: Cybersecurity Attack

Scenario sub type

Description

Data Breach

Unauthorised access to sensitive customer data.

Denial of Service

An attack floods a website or network with traffic, overwhelming its resources and making it unavailable to legitimate users.

Malware Attack

A malicious software program infects computers or networks, causing malfunctions, data theft, or disruption.

Phishing Attack

Employees fall victim to fraudulent emails leading to security breaches.

Ransomware Attack

Critical systems are encrypted, demanding a ransom for their release.

Supply Chain Attack

Unauthorised interference in the production or distribution process of goods or services

Scenario type 3: Fraud

Scenario sub type

Description

Payment Fraud

Occurs when someone steals another person's payment information and uses it to make unauthorized transactions or purchases.

Securities Fraud

Insider trading, false information dissemination.

Scenario type 4: Liquidity Crisis

Scenario sub type

Description

Counterparty Defaults

Financial institutions fail to meet obligations, triggering liquidity strains.

Market Downturn

Rapid decline in asset values leading to liquidity stress.

Spike in Withdrawals

A sudden increase in client fund redemption requests.

Scenario type 5: Market Disruption

Scenario sub type

Description

Currency Volatility

Significant fluctuations in exchange rates impacting portfolios.

Flash Crash

Sudden and severe market decline due to algorithmic trading anomalies.

Trading Suspension

Exchange halts trading due to technical glitches or excessive volatility.

Scenario type 6: Natural Disaster

Scenario sub type

Description

Earthquake/Flood

Physical damage due to earthquake or flood disrupts operations and customer services.

Severe Weather Event

Severe weather event like storms leads to power outages, transport issues, impacting operations.

Scenario type 7: Operational Disruption

Scenario sub type

Description

IT System Failure

A breakdown in IT system impacts business operations.

Key Personnel Absence

Unavailability of key staff impacts business operations.

Lockdown

Mandatory restrictions due to emergency situations or security threats impacts business operations.

Supplier Failure

Disruption in the supply chain affecting business continuity.

Systems Outage

Critical systems failure causing business interruption.

Scenario type 8: Regulatory Compliance Failure

Scenario sub type

Description

AML/KYC Violation

Inadequate anti-money laundering/ know-your-customer processes.

Market Abuse

Unlawful trading activities or market manipulation.

Reporting Errors

Submission of incorrect regulatory reports or missing deadlines.

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