A coupled peridynamics and finite-volume based poroelastic hydraulic fracturing simulator is applied to study failure mechanisms around hydraulic fractures. Primary mechanisms are identified that result in the creation of the SRV, which include the failure of mineral grain boundaries at the pore scale and reactivation of the natural fractures. The poroelastic stress changes due to fluid injection into a hydraulic fracture relax the stresses around the mineral interfaces and natural fractures, thereby promoting their failure. The magnitude of the strain (determined by the fracture width) controls the spatial extent of the SRV. More failure is observed closer to the hydraulic fracture. Failure regions like these form the SRV and their distance from the fracture face provides an estimate of the spatial extent of the SRV. A formation with a lower Young modulus transmits stress changes farther and forms a bigger SRV. Moreover, in a gas reservoir, due to the high compressibility of the gas, the changes in reservoir pressure and thus the poroelastic stresses are localized near the hydraulic fracture, resulting in a smaller SRV extent than an oil reservoir. 1. INTRODUCTION A propagating hydraulic fracture results in the creation of a stimulated rock volume (SRV), a region of higher permeability, around the hydraulic fracture (Mayerhofer et al., 2010). The effectiveness of a fracturing treatment is often correlated with the SRV extent and its permeability. These parameters are commonly obtained using microseismic or flowback data. Microseismic events generated during fracturing are received by the array of geophones installed in the vicinity (Zimmer, 2011). Flowback monitoring involves the analysis of early production data, comprising of the produced fracturing fluid (Clarkson & Williams-Kovacs, 2013; Alkouh et al., 2013). In this paper, we develop a novel modeling workflow for estimating the SRV extent using our integrated Peridynamics (PD)-Finite Volume (FV) based hydraulic fracturing model (Agrawal et al., 2020; Agrawal & Sharma, 2020). We propagate a hydraulic fracture using the FV formulation and monitor the resulting remote material damage using the PD formulation. The propagating hydraulic fracture causes poroelastic stress changes around it, which may lead to shear failure of the surrounding natural fractures or that of the weak mineral interfaces. In the case of unconventional reservoirs, these shear failure cracks may undergo sufficient permeability enhancement to allow for the flow of reservoir fluids in an otherwise virtually impermeable rock matrix. This region of enhanced permeability around the main hydraulic fracture constitutes the SRV.