The level of risk is a combination of the impact that the risk will have on the insurer and the probability of that risk materialising. The level of risk borne by the insurer should be assessed regularly using appropriate forward-looking quantitative techniques such as risk modelling,17 stress testing, including reverse stress testing, and scenario analysis. An appropriate range of adverse circumstances and events should be considered, including those that pose a significant threat to the financial condition of the insurer, and management actions should be identified together with the appropriate timing of those actions. Risk measurement techniques should also be used in developing long-term business and contingency plans, where it is appropriate to the nature, scale and complexity to do so.