Stress and Stress test: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
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Adverse market conditions.
Stress testing is a form of scenario analysis in which worst case data are input into a financial model.


Stress may relate to an individual institution, or to the market as a whole.
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==
 
*[[BAU]]
== See also ==
*[[Reverse stress test]]
* [[Back test]]
*[[Stress 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.


See also