Stress Tests

Stress tests are assessments designed to evaluate how well a system, organization, or individual can handle extreme conditions or pressures. In finance, for example, banks undergo stress tests to see if they can survive economic downturns or financial crises. In physical health, stress tests assess how the heart responds to exercise or increased workload. By simulating challenging scenarios, stress tests help identify weaknesses and ensure that adequate measures are in place to manage potential risks effectively. Ultimately, they are crucial for preparing for and mitigating the impact of unexpected difficulties.