Words / S / Business

stress-test

verb/ˈstrestest/

B2CEFR level
58/100Rarity: uncommon
TechnicalRegister

To gauge how a portfolio would fare under severe but plausible adverse scenarios.

Regulators made the bank stress-test its derivatives book against a repeat of the 2008 crash.

Topic: Finance in Business English

Rarity runs from 0 (a word everyone knows) to 100 (almost never seen outside specialist or literary writing). Level is the word's real difficulty on the CEFR scale, from A1 to C2.

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More business words: Finance