Framework
Risk

Stress Testing

Push assumptions to breaking point

Best for
finding where the plan snaps
Time
1–2 hr
Difficulty
Intermediate
Stress Testing diagramSchematic of the Stress Testing framework: Push assumptions to breaking point.Stress level
The Stress Testing diagram — Push assumptions to breaking point.
Example

Pushing the financial plan to find where it snaps

Assumptions stressed
  1. Acquisition cost +50% — runway falls from 18 to 12 months
  2. Sales cycle 2× longer — Q4 ARR target slips 30%
  3. Churn doubles in mid-market — net retention drops below 100%
  4. Key engineer leaves mid-project — Q3 launch slips 6 weeks
  5. Action: build trigger plans for each, refresh quarterly

Related frameworks

Risk

Scenario Planning

Plan across 4 plausible futures

Risk

Pre-mortem

Imagine the failure first

Risk

Black Swan Analysis

Surface unknown-unknowns

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