Scenario planning: Difference between revisions
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The idea is to ensure that the organisation's plans would remain robust, if the scenario were to occur. | The idea is to ensure that the organisation's plans would remain robust, if the scenario were to occur. | ||
Scenario planning is closely connected with stress testing and sensitivity analysis. | Scenario planning is closely connected both with stress testing and with sensitivity analysis. | ||
Latest revision as of 13:46, 1 December 2021
Strategic planning - sensitivity analysis - stress testing.
Scenario planning is a form of flexible long-term planning.
It takes account of the possibility of multiple simultaneous plausible, significant and adverse events outside the control of the organisation making the plans.
The idea is to ensure that the organisation's plans would remain robust, if the scenario were to occur.
Scenario planning is closely connected both with stress testing and with sensitivity analysis.
- Plan for bad times
- "... we need to plan for the bad times as well as the good.
- This means more and better stress testing, more scenario planning, understanding the points of weakness in our supply chains and developing better risk mitigants.
- Certainly, construction costs have increased in recent months – the debate now is how much is transitory and how much is permanent.
- What is the trade-off of embedding more redundancy in our processes?
- We need to get better at quantifying this."
- The Treasurer, November 2021 - Issue 4, 2021, p15 - Ian Chisholm, Group Treasurer, Grosvenor
