||One of risk management techniques that have attracted much attention over past several years among regulators and practitioners is stress testing. This thesis is an comprehensive interpretation of the issue of stress testing. Firstly, it is explained what stress testing is and from what the legal background is comes out. Also the role of stress testing in relation to standard risk management measure of VaR is discussed. Secondly, the banks´ risks are divided into market, credit and liquidity risk and parameters and techniques suitable for these areas are analyzed separately. In the part devoted to credit risk we meet with difficulties, as stress testing in this area is much less examined in comparison with market risk stress testing. We will also mention additional problems that arise in connection with stress testing in transitional countries, including Czech Republic. In order not to focus only on the theoretical aspects of stress testing, also the currently used practices will be studied. Final part is devoted to presumable future development toward risk aggregation and to new trends in stress testing.