Disadvantages of scenario analysis and stressing models? scenario

Howd

I know you have the answer. No easy copy and paste from the book.

dyga

Both can be subject to user bias

Unforseen

dtrynoski, can you please give an example of the user bias. Not much in the books.

Windjam

Well, someone correct me if I'm wrong, but the easiest way to think of it is, your model essentially has incorrect sensitivities to the factors, as well as correlations between the different factors and is hence bias.