Expertise
As the global economy faces volatility, exact forecasts are extremely difficult. Scenario analysis is a process that can ascertain and analyze potential upcoming events or developments that may occur in the future. This is an important tool in the world of finance and economics and is used to make projections for the future.
Several crucial questions have to be answered:
- What are the relevant factors (e.g. technological, economic, environmental, regulatory) that come into play when coping with complexity?
- What different scenarios of future development can be drawn up in order to reflect volatility?
- How can the company’s internal and the external view be optimally combined to best identify blind spots?
- How do the various scenarios look from different perspectives (e.g. whole industry vs. specific regions vs. one specific company or business unit)?
References
Assessing the feasibility of various strategic scenarios for two divisions of a corporate group