Stress testing is the measurement of the change in the value of a portfolio due to a stipulated change in one or more market risk factors (rates).

Stress testing in the Vector Risk cloud engine is extremely flexible with the following noteworthy features:

• Stress tests are defined as shifts and stored as definitions. They are reusable in that they are applied against current rates each time they are used.
• Shifts can be parallel or non-parallel.
• Shifts can be absolute or relative.
• Shifts can be on one curve, or multiple curves.
• Wildcards are supported to apply a particular stress test to multiple curves, and a flag decides whether they will be applied all at once, or split into separate tests.
• Calculations can be set up to point many portfolios at the tests.
• Market and credit risk stress calculations are supported.