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D-stress-test Dictionary

Stress test

Running a business plan at a worse price or cost to see whether it survives

All termsIntroduced in Module 7Open the Toolkit
An open dictionary on a farm office desk
Plain meaning
Running a business plan at a worse price or cost to see whether it survives
How to use it
Rerun the budget at a 20% lower price and a 20% higher cost. If the venture fails, redesign it before seeking finance.
South African benchmark
Concept term; South African lenders stress-test farm budgets before approving loans.
Country notes
Applies the same way in all five markets.
Go and read
C7
Calculate it
T-C-07 Risk Register
Library sources
LIB-A013, LIB-A076
See also
Break-even yield, Hedging
Map of trade flows from South Africa into the four local marketsSouth AfricaZimbabweZambiaBotswanaNamibiaTrade corridorsSouth Africa supplies the regionImport parity sets the ceilingExport parity sets the floorBans and levies move the priceMain flows
From Module 7, Trade and Policy, where this term is introduced.

Introduced in C7 Trade and Policy.