Stress Testing Framework

A Stress Testing Framework is a structured way to evaluate how a company, bank, or system performs under extreme conditions, such as economic downturns or unexpected crises. It involves simulating challenging scenarios to identify vulnerabilities and assess whether existing strategies and resources are sufficient to handle severe stress. This helps organizations prepare for potential risks, improve their resilience, and ensure stability during adverse events. Essentially, it's a proactive tool for testing limits and strengthening defenses before real problems occur.