CIMA P3 Syllabus B. Strategic risk - Scenario Planning - Notes 12 / 13
Scenario planning:
allows an organisation to model the various outcomes that it expects to experience within its own environment. These scenarios are based upon changing assumptions driven by disruptions which create high levels of uncertainty.
Steps in scenario planning
Define the scope
Identify which factors will most affect the organisation.
What are the plausible outcomes for each factor?
What are the plausible, internally consistent combinations of factors?
What are the effects of these scenarios on the organisation respond?
How should the organisation respond?
Go back and recheck assumptions and scenarios in the light of decision made as some decisions might affect these.
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