Stress and Stress test: Difference between pages
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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. | |||
==See also== | |||
*[[ | == See also == | ||
*[[Reverse stress test]] | * [[Back test]] | ||
*[[ | * [[Model]] | ||
* [[Reverse stress test]] | |||
* [[Scenario analysis]] | |||
* [[Sensitivity analysis]] | |||
[[Category:Risk_frameworks]] |
Revision as of 08:26, 16 December 2014
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.