Scenario Analysis
Scenario Analysis is a strategic planning tool used to evaluate possible future events by considering alternative outcomes. It helps organizations understand how different variables can impact their goals and decisions. By creating various scenarios, businesses can prepare for uncertainties and make informed choices.
In Scenario Analysis, each scenario represents a distinct set of assumptions about the future, such as economic conditions, market trends, or regulatory changes. This method allows decision-makers to visualize potential risks and opportunities, ultimately leading to more resilient strategies and better preparedness for unexpected changes in their environment.