Last Updated: July 11, 2025
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Overview
This module delivers risk-aware testing of property valuations by analyzing sensitivity to key assumptions and simulating multiple market scenarios. It helps assess valuation robustness and potential value variability under changing conditions.
The RISI Framework Breakdown for Sensitivity and Scenario Testing
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional valuation stress testing analyst. |
| I | Insight | Analyzes valuation sensitivity to assumptions such as discount rates, growth, and occupancy. |
| S | Strategy | Simulates scenario testing with varying market conditions to evaluate valuation ranges. |
| I | Impact | Provides actionable guidance on managing valuation uncertainty and risk mitigation. |
How to Use the Sensitivity and Scenario Testing Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target property or market:
What to enter for [TARGET]:
A brief summary of the property or market context, for example:
- “A commercial property with fluctuating occupancy and rent growth projections.”
- Or, “A retail asset subject to changing market demand and cap rate shifts.”
- Or keep it generic: “A commercial real estate portfolio with diverse risk factors.”
- Role Prompt:
Activate ProValuations Mode for Real Estate Institutional Level Analysis - Sensitivity Analysis Prompt:
Summarize valuation sensitivity to key assumptions for [TARGET]. Limit output to one paragraph. - Scenario Simulation Prompt:
Analyze valuation ranges under different market scenarios for [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional stress testing strategies for valuation risk management in [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize investment implications from sensitivity and scenario testing. Provide one clear, actionable paragraph grounded in institutional behavior.
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