This is what I understand: stress testing is divided into:
A. Scenario Analysis
B. Stressing models
Stressing models can be further divided into Factor push, Max loss optimisation, and Worst case scenario.
However what im failing to understand is the between scenario analysis and stressing models in general.
To me, stressing models measure the effects of changing factors on a model which is in essence scenario analysis (putting the model through different scenarios and observing the impact). Further “worst case scenario” is considered stressing model and not a scenario, yet this sound like a scenario analysis under worst case conditions.
Is this semantics:)