Scenarios and Stress Testing

Scenarios and stress testing are methods used by organizations to evaluate their resilience under challenging conditions. Scenario testing involves examining specific, plausible situations—like an economic downturn or cyberattack—to see how the organization can respond. Stress testing pushes situations to extreme levels beyond normal expectations to identify vulnerabilities. Both approaches help organizations prepare for potential risks by understanding their strengths and weaknesses, ensuring they can manage crises effectively and remain stable regardless of circumstances.