Guest column: Stress testing powers strategic planning for energy companies

New stress testing solutions can help energy companies better understand their exposures during extreme market events, but the sophistication of a stress-testing program can be limited by the availability of quantitative skills, reliability of data, and costs.
What is stress testing?
Stress testing is an important risk management tool that plays a role in strategic planning. A stress-testing program helps leadership understand the impact of extreme events (changing regulations, volatile commodity prices, developing technologies, and extreme weather patterns) on the organization’s financial positions. Understanding the variables that drive stress allows management to develop a plan to mitigate these risks and absorb the associated impact.
Source: FuelFix