--- title: "[OR] [MLRe] [E2] [C12] Performing Scenario Testing of OR Implement Phase for Malaysian Life Reinsurance Group Berhad" description: How MLRe tests critical services against severe but plausible scenarios such as ransomware, cloud failure and loss of its Kuala Lumpur office. image: https://blog.bcm-institute.org/hubfs/MLRE%20Graphic%20Folder/MLRE%20E2%20Morepost/%5BOR%5D%20%5BMLRE%5D%20%5BE2%5D%20%5BP2%5D%20%5BS4%5D%20%5BC12%5D%20Performing%20Scenario%20Testing.jpg --- [![BCMIWhiteLogo.png](https://blog.bcm-institute.org/hs-fs/hubfs/Blog%20Testing/BCMIWhiteLogo.png?width=556&name=BCMIWhiteLogo.png "BCMIWhiteLogo.png")](http://www.bcm-institute.org/) - [Home](https://www.bcm-institute.org/) - [About Us](https://www.bcm-institute.org/about-us-3/) - [A President’s Perspective](https://www.bcm-institute.org/about-us/a-presidents-perspective/) - [Our History](https://www.bcm-institute.org/about-us/our-history/) - [Our Advisory Council](https://www.bcm-institute.org/about-us/our-advisory-council/) - [Customers’ Testimonials](https://www.bcm-institute.org/about-us/customers-testimonials/) - [Credential Verification](https://www.bcm-institute.org/about-us/credential-verification/) - [Courses](https://blog.bcm-institute.org/blog/course-fees-for-blended-learning-courses-master-catalog) - [ISO 22301 Business Continuity Management System Audit](https://blog.bcm-institute.org/audit/business-continuity-management-audit-courses) - [ISO 22301 Business Continuity Management](https://blog.bcm-institute.org/bcm/business-continuity-management-courses) - [Crisis Communication](https://blog.bcm-institute.org/crisis-communication/crisis-communication-courses) - [Crisis Management](https://blog.bcm-institute.org/en/crisis-management/courses) - [IT Disaster Recovery](https://blog.bcm-institute.org/it-disaster-recovery/courses) - [Operational Resilience](https://blog.bcm-institute.org/operational-resilience/courses) - [Operational Resilience Audit](https://blog.bcm-institute.org/operational-resilience-audit/courses) - [Certification](https://blog.bcm-institute.org/certification/types-of-certifications-offered) - [ISO 22301 BCMS Audit Certification](https://blog.bcm-institute.org/certification/business-continuity-management-audit-certification) - [ISO22301 Business Continuity Management Certification](https://blog.bcm-institute.org/bcm/business-continuity-management-certification) - [Crisis Communication Certification](https://blog.bcm-institute.org/crisis-communication/crisis-communication-certification) - [Crisis Management Certification](https://blog.bcm-institute.org/en/crisis-management/crisis-management-certification) - [IT Disaster Recovery Planning Certification](https://blog.bcm-institute.org/it-disaster-recovery/it-disaster-recovery-certification) - [Operational Resilience Certification](https://blog.bcm-institute.org/operational-resilience/operational-resilience-certification) - [Operational Resilience Audit Certification](https://blog.bcm-institute.org/operational-resilience-audit) - [Seminars](https://blog.bcm-institute.org/meet-the-expert/mte-webinar-mainpage) - [Store](https://www.bcm-institute.org/store-2/) - [Contact Us](http://www.bcm-institute.org/about-us/contact-us/) - - ###### Operational Resilience Ebook Series ![\[BB\] \[Ins\] Storm-Protected Smart Home](https://blog.bcm-institute.org/hs-fs/hubfs/BB%20Insurance/BB%20Insurance%20V2%202026/%5BBB%5D%20%5BIns%5D%20Storm-Protected%20Smart%20Home.png?width=1677&height=938&name=%5BBB%5D%20%5BIns%5D%20Storm-Protected%20Smart%20Home.png "[BB] [Ins] Storm-Protected Smart Home") # \[OR\] \[MLRe\] \[E2\] \[C12\] Performing Scenario Testing of OR Implement Phase for Malaysian Life Reinsurance Group Berhad [![\[OR\] \[MLRE\] \[Full Banner\] Building Organisational Resilience An Operational Resilience Guide for Malaysian Life Reinsurance ](https://no-cache.hubspot.com/cta/default/3893111/6898dbc1-274c-4300-9b8e-97cdd96a7a30.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/6898dbc1-274c-4300-9b8e-97cdd96a7a30) An impact tolerance is only a number until it has been tested. This chapter covers Stage 4 of the Implement phase: **Perform Scenario Testing** at Malaysian Life Reinsurance Group Berhad (MLRe). ## What is Scenario Testing? Scenario testing exercises MLRe's ability to stay within its impact tolerances when severe but plausible events disrupt a critical business service. It tests the service end to end, including people, technology, third parties and decision-making. [![Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/58ea4ab9-998a-451c-bb54-801ae4cb782d.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/58ea4ab9-998a-451c-bb54-801ae4cb782d)[![\[Logo\] \[OR\] Certification Transparent](https://no-cache.hubspot.com/cta/default/3893111/09ce1ea0-4d44-4deb-867f-2e2b1b867768.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/09ce1ea0-4d44-4deb-867f-2e2b1b867768) [Dr Goh Moh Heng](https://blog.bcm-institute.org/or-v2/author/dr-goh-moh-heng) Nov 13, 2026 ### [![x \[OR\] \[MLRE\] Legal Disclaimer Banner](https://no-cache.hubspot.com/cta/default/3893111/141492be-2bd8-434d-a664-dfdf2c7480ba.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/141492be-2bd8-434d-a664-dfdf2c7480ba) [![Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/58ea4ab9-998a-451c-bb54-801ae4cb782d.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/58ea4ab9-998a-451c-bb54-801ae4cb782d) ### [![\[OR\] \[MLRE\] \[E2\] \[C12\] Performing Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/9c4c206a-db4d-4869-a6eb-2822ce24d200.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/9c4c206a-db4d-4869-a6eb-2822ce24d200)Conducting Scenario Testing An impact tolerance is only a number until it has been tested. This chapter covers Stage 4 of the Implement phase: **Perform Scenario Testing** at Malaysian Life Reinsurance Group Berhad (MLRe). ## What is Scenario Testing? Scenario testing exercises MLRe's ability to stay within its impact tolerances when severe but plausible events disrupt a critical business service. It tests the service end to end, including people, technology, third parties, and decision-making. ## Traditional Scenario vs Impact Tolerance Scenario Test | | **Traditional BCM / DR test** | **Impact tolerance scenario test** | | --- | --- | --- | | **Focus** | **A system, site or plan** | **A critical business service** | | **Question** | **Can we recover to the RTO?** | **Can we stay within tolerance if recovery plans work imperfectly?** | | **Scenario** | **Often a predefined, single event** | **Severe but plausible, may combine events** | | **Participants** | **Mostly IT and BCM team** | **Service owners, business, IT, third parties and senior management** | ## Why Scenario Test? - To find out whether tolerances are realistic before a real event does. - To expose hidden dependencies and weak workarounds. - To practise decisions and communication under pressure. - To give the Board and BNM evidence of readiness. ## What is the Board's Involvement? The Board does not run the exercise, but it approves the scenario programme, reviews results, challenges conclusions and decides on investment or changes to tolerance. Board or senior management members should be invited to observe or take part in at least one exercise a year. ## How to Perform Scenario Testing ### 1. Define scenarios Build scenarios that are severe but plausible for a Malaysian life reinsurer. Illustrative examples: - **Ransomware on treaty and actuarial systems** during the year-end valuation and treaty renewal period. - **Failure of the main cloud or IT service provider** for several days, affecting claims and treaty systems at once. - **Loss of the Kuala Lumpur office and staff access**, for example from severe flooding or a building incident, combined with a network outage. - **Pandemic-type absence** of a large share of claims and actuarial staff. - **Custodian or major counterparty failure** disrupting investment settlement. ### 2. Assess impact For each scenario, estimate how long each affected critical service would be down or degraded, and what that means for cedants, regulators, finances and reputation. Compare to the tolerance. ### 3. Conduct testing Choose the right method for the objective: a tabletop discussion for decision-making, a simulation for technical recovery, a live test for particular systems. Begin with tabletops and increase realism over time. Use injects, such as "the cloud provider says recovery will take four more days," to force decisions. ### 4. Evaluate responses Assess incident management, escalation, communication with cedants and BNM, use of workarounds, and recovery. Record time to detect, decide and restore. State plainly whether tolerance was met, and with what margin. ### 5. Document lessons learned Write a short report with findings, evidence, owners and deadlines, and send it to the OR Steering Committee and the Board Risk Management Committee. Chapter 13 explains how to act on it. ## Practical Tips - Test the busiest period, not the quietest. - Include third parties in at least some exercises. - Do not reuse the same scenario every year. - Treat a failed test as a useful result, not a failure of the programme. ## [![\[Banner\] \[Summing\] \[OR\] \[E2\] \[C12\] Performing Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/4edc500a-7ed8-4428-af55-97cfed79825c.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/4edc500a-7ed8-4428-af55-97cfed79825c)Summary Scenario testing tells MLRe whether its resilience claims hold up. Chapter 13 turns the findings into improvements. [![\[OR\] \[MLRE\] \[34 Banner\] Building Organisational Resilience An Operational Resilience Guide for Malaysian Life Reinsurance ](https://no-cache.hubspot.com/cta/default/3893111/cf0d3512-4dc7-4e6e-96a9-74e9c30a002c.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/cf0d3512-4dc7-4e6e-96a9-74e9c30a002c) | **eBook 2: Implementing Operational Resilience for Malaysian Life Reinsurance** | | | | | --- | --- | --- | --- | | **C1** | **C2** | **C8** | **C14** | | [![New call-to-action](https://no-cache.hubspot.com/cta/default/3893111/17a2eb25-208f-4500-9dea-4e79a6d9f06a.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/17a2eb25-208f-4500-9dea-4e79a6d9f06a) | [![\[OR\] \[MLRE\] \[E2\] \[C2\] Five Stages of the "Plan" Phase](https://no-cache.hubspot.com/cta/default/3893111/132af509-6e86-4d7a-8997-70e40b8a3037.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/132af509-6e86-4d7a-8997-70e40b8a3037) | [![\[OR\] \[MLRE\] \[E2\] \[C8\] Five Stages of the "Implement" Phase](https://no-cache.hubspot.com/cta/default/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b) | [![\[OR\] \[MLRE\] \[E2\] \[C14\] Five Stages of the "Sustain" Phase](https://no-cache.hubspot.com/cta/default/3893111/b3074256-e267-4914-96ff-2907cb4185be.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/b3074256-e267-4914-96ff-2907cb4185be) |   | | **"Implement" Phase of the Operational Resilience Planning Methodology** | | | | | | | --- | --- | --- | --- | --- | --- | --- | | | **C8** | **C9** | **C10** | **C11** | **C12** | **C13** | | | [![\[OR\] \[MLRE\] \[E2\] \[C8\] Five Stages of the "Implement" Phase](https://no-cache.hubspot.com/cta/default/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/f70329aa-1c8f-481a-b4df-ddcce98fab6b) | [![\[OR\] \[MLRE\] \[E2\] \[C9\] Identifying Critical Business Services](https://no-cache.hubspot.com/cta/default/3893111/eaa0e14a-bc50-4585-b237-8d8735375cf6.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/eaa0e14a-bc50-4585-b237-8d8735375cf6) | [![\[OR\] \[MLRE\] \[E2\] \[C10\] Mapping Interconnections and Interdependencies](https://no-cache.hubspot.com/cta/default/3893111/d9be2b0b-eec3-4157-abaf-d29c008b882d.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/d9be2b0b-eec3-4157-abaf-d29c008b882d) | [![\[OR\] \[MLRE\] \[E2\] \[C11\] Establishing Impact Tolerance](https://no-cache.hubspot.com/cta/default/3893111/fa0ab6e4-1232-4172-81b1-6c5fb42032e4.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/fa0ab6e4-1232-4172-81b1-6c5fb42032e4) | [![\[OR\] \[MLRE\] \[E2\] \[C12\] Performing Scenario Testing](https://no-cache.hubspot.com/cta/default/3893111/9c4c206a-db4d-4869-a6eb-2822ce24d200.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/9c4c206a-db4d-4869-a6eb-2822ce24d200) | [![\[OR\] \[MLRE\] \[E2\] \[C13\] Improving Lessons Learned](https://no-cache.hubspot.com/cta/default/3893111/e31acbac-a832-4c5f-afd2-58bae19ecdb6.png)](https://cta-redirect.hubspot.com/cta/redirect/3893111/e31acbac-a832-4c5f-afd2-58bae19ecdb6) |   ## **Comments** ![CTA Banner\_OR](https://blog.bcm-institute.org/hubfs/CTA%20Banner%20for%20Blog/CTA%20Banner_OR.jpg "CTA Banner_OR") --- ![CTA Banner\_ORA](https://blog.bcm-institute.org/hubfs/CTA%20Banner%20for%20Blog/CTA%20Banner_ORA.jpg "CTA Banner_ORA") --- ![CTA Banner\_BCM](https://blog.bcm-institute.org/hubfs/CTA%20Banner%20for%20Blog/CTA%20Banner_BCM.jpg "CTA Banner_BCM") --- ![CTA Banner\_ITDR](https://blog.bcm-institute.org/hubfs/CTA%20Banner%20for%20Blog/CTA%20Banner_ITDR.jpg "CTA Banner_ITDR") --- ![CTA Banner\_CM](https://blog.bcm-institute.org/hubfs/CTA%20Banner%20for%20Blog/CTA%20Banner_CM.jpg "CTA Banner_CM") ![BCMIWhiteLogoSmall.png](https://blog.bcm-institute.org/hs-fs/hubfs/Blog%20Testing/BCMIWhiteLogoSmall.png?width=72&name=BCMIWhiteLogoSmall.png "BCMIWhiteLogoSmall.png") All rights reserved. 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