Scenario planning is a technique that helps organizations to better prepare for future events, such as natural disasters, financial crises, and political changes. These events may be anticipated or unanticipated and may take place in the near or distant future. Scenario planners help companies to anticipate risks before they happen so that they can be better prepared when they do happen. The ability to imagine different futures can help organizations identify opportunities and make more informed decisions about how to react in the face of uncertainty. Scenarios can also provide valuable insights into how an organization might operate in the future, which is helpful for strategic planning purposes.
Scenario analysis is a technique used to explore the potential future of an organization. It can be thought of as a “what if” exercise that helps an organization prepare for the uncertainties and risks it faces in its environment. Scenarios can be created internally or by using external experts, and they are often developed as story lines with different outcomes and risks. A scenario analysis can be used as a strategic planning tool, or it can be used to identify potential risks and opportunities in advance.