Stress test: Difference between revisions
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Stress testing necessarily involves a significant degree of judgement and subjectivity in identifying the appropriate worst case inputs with which to run the stress test. | Stress testing necessarily involves a significant degree of judgement and subjectivity in identifying the appropriate worst case inputs with which to run the stress test. | ||
== See also == | == See also == | ||
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* [[Scenario analysis]] | * [[Scenario analysis]] | ||
* [[Sensitivity analysis]] | * [[Sensitivity analysis]] | ||
[[Category:Risk_frameworks]] | |||
Revision as of 14:10, 9 October 2013
Stress testing is a form of scenario analysis in which worst case data are input into a financial model.
The idea is to test whether creditworthiness - or any other attribute being modelled - is robust enough to survive the selected 'worst case' scenario.
Stress testing necessarily involves a significant degree of judgement and subjectivity in identifying the appropriate worst case inputs with which to run the stress test.
