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~ 3 min read. Psychological assessment is a process of testing that uses a combination of techniques to help arrive at some hypotheses about a person and their behavior, personality and capabilities. Psychological assessment is also referred to as psychological testing, or performing a psychological battery on a person.
A. Stress Testing Defined. Stress testing is a risk management technique used to evaluate the potential effects on an institutionâs financial condition, of a set of specified changes in risk factors, corresponding to exceptional but plausible events. Stress testing includes scenario testing and sensitivity testing (refer to Glossary). Stress testing is especially important after long periods of benign economic and financial conditions, when fading memory of negative conditions can lead to complacency and the underpricing of risk.