Question: Which statement is the best description of sensitivity analysis in the context of the IADM process? Identifying key projection assumptions, modifying them to reflect worst

Which statement is the best description of sensitivity analysis in the context of the IADM process?
Identifying key projection assumptions, modifying them to reflect worst-case scenario, and reviewing the impact of these changes on future performance.
Evaluating how sensitive management is to changes and trends in their industry and business.
Identifying key risk factors, modifying them, and reviewing the impact of these changes on borrower performance.

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