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Home > QFINANCE Dictionary > Definition of scenario planning

Definition of

scenario planning

General Management

imagining future conditions or events for planning strategy a technique that requires the use of a scenario in the process of strategic planning to aid the development of corporate strategy in the face of uncertainty about the future The process of identifying alternative scenarios of the future, based on a variety of differing assumptions, can help managers anticipate changes in the business environment and raise awareness of the frame of reference within which they are operating. The scenarios are then used to assist in both the development of strategies for dealing with unexpected events and the choice between alternative strategic options.

scenario planning - Related Articles

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    This checklist describes financial scenario analysis and how it is used to improve decision-making and investment planning.

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    Ongoing business planning is dependent on accurate forecasting. Without good stress testing and scenario analysis, big corporations cannot make accurate business forecasts. One approach is to view the business from a portfolio perspective, with capital management, liquidity management, and financial

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    Historically, banks or companies have generally failed because they had no meaningful contingency plan. Indeed, banks with a sound contingency funding plan are considered much more likely to survive a funding crisis. While no retail bank actually failed during the global credit crunch of 2007

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Definitions of ’scenario planning’ and meaning of ’scenario planning’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’scenario planning’ and other financial terms with our online QFINANCE Financial Dictionary.

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