The European Banking Authority has published a new chapter of its Union resolution Handbook that sets out a comprehensive framework of best practices, methodologies and processes for resolution authorities to run structured simulation exercises to strengthen preparedness and operational capabilities. The chapter proposes a common taxonomy to harmonise concepts used in simulation exercises, and distinguishes between testing, simulations and dry runs. It defines six core exercise types (brainstorms, desktop exercises, walkthroughs, fire drills, decision-making exercises and operational simulations) and introduces end-to-end simulations that combine multiple exercise types to replicate real-world resolution scenarios. Operational guidance covers how to initiate, plan, prepare and deliver exercises, including setting objectives and scope, scenario design, resource allocation, delivery management and feedback collection, supported by templates and examples for proportionate implementation.
European Banking Authority 2025-07-16
European Banking Authority publishes resolution Handbook chapter setting best practices for simulation exercises by resolution authorities
The European Banking Authority has released a new chapter of its Union resolution Handbook, detailing a framework for resolution authorities to conduct structured simulation exercises. It introduces a common taxonomy and defines six core exercise types, including end-to-end simulations for real-world scenarios. The chapter provides operational guidance on planning, executing, and evaluating these exercises.