What are the benefits of a stress test?
Stress tests help identify vulnerabilities in systems, ensuring they can handle extreme conditions.
Can you give me some examples of when stress tests are used?
Sure! They're commonly used in finance to assess banks' resilience during economic downturns.
How often should stress tests be conducted?
It's recommended to conduct them at least annually or after significant changes in the system.
What are the potential risks of not performing stress tests?
Not performing stress tests can lead to undetected weaknesses, resulting in failures during critical situations.
Are there different types of stress tests?
Yes, there are various types, including scenario analysis, sensitivity analysis, and reverse stress testing.
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