A licensed central counterparty must—
| (a) | use scenario analysis in conjunction with external data in order to evaluate— |
| (i) | the central counterparty’s exposure to high-severity events; |
| (ii) | the impact of deviations from the correlation assumptions embedded in the central counterparty’s operational risk measurement framework; |
| (iii) | potential losses which may arise from multiple simultaneous operational risk loss events; |
| (b) | have adequately skilled staff to— |
| (i) | conduct the scenario analysis; |
| (ii) | derive reasoned assessments of plausible severe losses; |
| (c) | over time, in order to ensure the reasonableness of its risk measures and assessments, validate and re-assess the assessments of plausible severe losses generated through scenario analysis through comparison to actual loss experience. |
