How do I stress test or apply sensitivity analysis to a company?

This article outlines how to run stress tests or sensitivity analysis on a report.

Sensitivity analysis and stress testing helps evaluate the potential impact of changes in key variables on an SME.

You can quickly and easily apply stress tests to new or existing risk assessments, or through a batch upload.

Marking assessments as stress tests will ensure that these reports do not feed into your portfolio management & analysis.

For new/fresh risk assessments:

'Single Company' > 'Provide own data'
Select 'Upload your CSV or Excel file'
Navigate to where your file is located and select 'Open'
Or, drag and drop it
- The platform will check whether the file is valid
  (any issues will be displayed in the right of the upload manager)
Set 'Portfolio Excluded' to 'Yes'
This will flag the risk intelligence outputs and not include them in any portfolio monitoring or management analysis.
Click 'Generate new report'

2023-11-01-kb-stress_test-single

In existing risk assessments:

Navigate to the report you wish to stress test
In the 'Data Sources' section, under 'Add More Data', select 'Upload'
Download the 'Report CSV'
Download the CSV at the top of the page and save it where you can amend the data

2023-11-06-kb-stress_test-add-01

- Open the 'Report CSV' file you just downloaded, and amend accordingly. Any financial values you would like to stress test or apply sensitivity analysis to.
- Save the amended CSV file
Back on the platform, within the 'Upload your CSV' page
Navigate to where your file is located and select 'Open'
Or, drag and drop it into the upload section
- The platform will check whether the file is valid
  (any issues will be displayed in the right of the upload manager)
Set 'Portfolio Excluded' to 'Yes'
This will flag the risk intelligence outputs and not include them in any portfolio monitoring or management analysis.
Click 'Generate new report'

2023-11-06-kb-stress_test-add-02

With batch uploads:

Enter 'Multiple Companies' from the navigation panel
Click 'Create a Batch Report'
Name your batch report, and upload your CSV / Excel file
Templates are available below, if required
Navigate to where your CSV file is located and select 'Open'
Or, drag and drop it into the upload section
- The platform will check whether the CSV file is valid
  (any issues will be displayed in the right of the upload manager)
Set 'Portfolio Excluded' to 'Yes'
This will flag the risk intelligence outputs and not include them in any portfolio monitoring or management analysis.
Click 'Run Batch'

2023-11-06-kb-stress_test-add-03

The resulting risk assessment will be based on the changes you have made to the original report and reflected in the risk metrics, financials and ratios.

You can repeat the process as many times as you like to continue stress testing and applying sensitivity analysis.

When 'Portfolio Excluded' is marked as 'Yes', users will see indicators in single reports, batch reports, and within a stress-tested report to mark relevant reports as stress test exercises to avoid confusion with a regular risk assessment.

Marking assessments will ensure that these reports do not feed into your portfolio management & analysis.

2023-11-06-kb-stress_test-indicate

The required fields when uploading an MDI file into the platform:
The file will fail its validity check if one of these are missing.

Company ID
Company Name
Creditors
Currency (ISO 4217)
Debtors
Inventory
ISO (ISO 3166-1 alpha-2 code)
Loans
Period (formatted as YYYY-MM-DD or YYYY)
Total Assets (Required on API Only)

It's worth mentioning here - the more detailed the financial data included in the MDI file, the better the produced assessment will be.
Inputting just these will be enough to generate benchmark scores.

To ensure that the data is mapped correctly to the model inputs, please consider the following document:

Financial Statement - MDI Field Mapping

Please note:

As Wiserfunding uses commas (,) as default delimiters/separators, CSV files with semicolons (;) as delimiters/separators will give you upload issues.

To learn how set commas (,) as a delimiter/separator to a CSV file, please read the following article.

For a guide on using our Templates, please read the following article.

If you have any further questions or face any issues, please contact our support team.