Committee of Chief Risk Officers 8000 Research Forest Dr. info@ccro.org STE 115 #278 http://ccro.org The Woodlands, TX 77380 5 Advancing Our Energy Industry’s Risk &Compliance Best Practices Anderson: Stress testing methods is our number three example of areas our LNG group could delve into. Most of us know how valuable that straightforward stress test can be when things get complicated. Sometimes a look at something simple like stress testing can deliver a message in a way that's most understandable to senior management, and most importantly, is actionable. Most of us know how valuable that straightforward stress test can be when things get complicated. Perhaps we can develop some scenarios to consider for stress-tests. In addition, there may be some best practices for measuring and/or reporting stress test results that members have discovered from experience? All of this can be shared inside the CCRO for the development of industry recommendations in this area. Check out some of our past work regarding stress testing here… 3) Stress Testing Best Practices for LNG ?• Could we host a survey of current “stress test practices” as a basis for initial discussions ?• Eg. Thoughts on questions: What factors are included in your stress tests? Are they evaluated together or in separate runs? What historical scenarios do you routinely run? • …etc. • What can be done with stress tests – for practical impact on risk mgt ?• Could similarly ask survey participants for thoughts: Do you use stress tests as a basis for limits? Where (with whom) are the results of stress tests discussed? Are stress test results treated as risk capital measures? • …etc. www.ccro.org 5