The CRO Forum believes that scenario analysis and stress testing are valuable tools for (re-) insurers’ risk and capital management processes.  They provide important insight and complement results from internal economic models.  There is a wide range of current and potential applications for scenario analysis and stress testing.  We believe that a good risk management framework has a clear vision about where scenario analysis and stress testing adds value and how to embed it. Depending on the risk profile and the intended application, scenario analysis and stress test programs will look quite different from company to company. In this CRO Forum paper we have identified a number of principles to help the implementation of such a program.