Stress testing encompasses the evaluation of specific test events that could potentially arise within an organization's external operating environment. These events have the capacity to affect various types of risks, including operational risk. Illustrative examples encompass economic recessions, pandemics, or significant political occurrences such as BREXIT. Such stress events possess the potential to profoundly disrupt an organization's strategy and operations, thereby signifying their high-impact nature.
Source: IOR’s Guide on Stress Testing