Stress testing for nonfinancial companies

Source: McKinsey&Company.

Assessing a company’s vulnerability to risk makes otherwise theoretical discussions of strategy more real.

In the decade since the global financial crisis, financial companies have honed their ability to measure risk in a way that nonfinancial companies have not. Granted, nonfinancial executives hadn’t faced the same existential crisis. And they’ve seldom come under the same kinds of investor and regulatory pressure. But the result is that they haven’t absorbed many of the lessons on risk management learned by the financial sector. >>