The Basel Committee on Banking Supervision issued its final stress testing principles on Wednesday, which replace the Principles for sound stress testing practices and supervision published in May 2009.

The revised principles set out best practices for stress testing and supervising global banks. They are designed to address key weaknesses in stress testing practices that were exposed by the financial crisis, the committee says in a news release.

Moreover, stress testing has become more important in the years since the crisis, the committee says, nd is now considered a critical element of risk management for banks, and a key tool for banking regulators.

The principles have been streamlined so that they can be applied across a range of banks and jurisdictions, while also facilitating evolving best practices.

The principles focus on the core elements of stress testing frameworks. These include the objectives, governance, policies, processes, methodology, resources and documentation that guide stress testing activities and facilitate the use, implementation and oversight of stress testing frameworks.