Stress Testing is the use of financial models to test the resiliency of businesses through “stressed” situations, such as this crisis. The main purpose of Stress Testing is to plan remedying actions to put the company on a sound financial basis, and to answer questions internally, such as how to continue operations in order to be able to resurrect later, and externally from key stakeholders like lenders and investors.
We have put together a free template (Canadian and US versions) and whitepaper for small and medium-sized businesses to come up with an internal plan, and to calculate detailed financials for internal and external communications.
