Tag
#scenario-analysis
3 articles
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Scenario Analysis Explained: Building Coherent Futures, Not One Forecast
Scenario analysis replaces a single point forecast with a small set of internally consistent futures, each with its own assumptions, so you can see how a view breaks.
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Stress Testing a Portfolio: Historical and Hypothetical Shocks
Stress testing asks what a portfolio would do under a severe but conceivable shock, using either a replayed historical episode or a designed hypothetical one.
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What-If Analysis in Financial Models: Structuring It So It Changes a Decision
What-if analysis tests how a model responds to changed assumptions. Done well it is decision useful, done badly it produces a wall of numbers nobody acts on.
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