Stress Testing - P2

Question 1

What is stress testing?

Answer 1

Way of analysing a business to consider how well it could cope in difficult conditions.
Process of assessing the vulnerability of a position against a hypothetical event

Question 2

What are the seven questions that the business should try to answer?

Answer 2

1. Prioritisation:
   Who is your primary customer?
   How do your core values prioritise shareholders, employees, and customers?
2. Measurement:
   What critical performance variables are you tracking?
   What strategic boundaries have you set?
3. Productivity:
   How are you generating creative tension?
   How committed are your employees to helping each other?
4. Flexibility:
   What strategic uncertainties keep you awake at night?