Sensitivity analysis: Difference between revisions

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''Sensitivity analysis and stress testing.''
The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.  
The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.  


It can also be used to identify the break even point or points, at which a financial decision would change.
It can also be used to identify the break even point or points, at which a financial decision would change.


An important type of sensitivity analysis is stress testing.
An important type of sensitivity analysis is stress testing.


== See also ==
== See also ==
* [[Back test]]
* [[Break even point]]
* [[Break even point]]
* [[Financial model]]
* [[Model]]
* [[Model]]
* [[Quantitative techniques]]
* [[Reverse stress test]]
* [[Scenario analysis]]
* [[Scenario analysis]]
* [[Sensitivity]]
* [[Sensitivity]]
* [[Stress test]]
* [[Stress test]]


[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Risk_reporting]]
[[Category:Financial_products_and_markets]]

Latest revision as of 14:06, 8 April 2021

Sensitivity analysis and stress testing.

The refinement of a financial valuation or decision making model. Sensitivity analysis quantifies the degree of change in a valuation or other assessment, to changes in one or more of the inputs.

It can also be used to identify the break even point or points, at which a financial decision would change.


An important type of sensitivity analysis is stress testing.


See also