Browse Definitions :
Definition

scenario

Contributor(s): Ivy Wigmore

A scenario, in the context of business planning and strategy, is a potential event or combination of events that could be relevant to the organization -- typically because it could create a significant risk or provide a significant opportunity.

Scenario modeling and scenario planning allow a business to anticipate potential events and create strategies to deal with them to best effect. Here are a few historical examples illustrating how companies have used scenario planning to enable them to respond quickly to events: 

  • Xerox anticipated the convergence of printers and copiers.
  • Royal Dutch / Shell anticipated a drop in oil prices in 1986.
  • American Express anticipated the replacement of travelers' checks by credit cards.

In each case, preparedness ensured that the companies were not caught off guard, which meant that they were better prepared to deal with those scenarios than competitors. 

Tools such as what if scenario analysis (WISA) can help automate some of the processes of scenario planning.

See a video explanation of scenario planning:

This was last updated in March 2015

Continue Reading About scenario

Start the conversation

Send me notifications when other members comment.

Please create a username to comment.

SearchCompliance

  • risk assessment

    Risk assessment is the identification of hazards that could negatively impact an organization's ability to conduct business.

  • PCI DSS (Payment Card Industry Data Security Standard)

    The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to ...

  • risk management

    Risk management is the process of identifying, assessing and controlling threats to an organization's capital and earnings.

SearchSecurity

SearchHealthIT

SearchDisasterRecovery

  • call tree

    A call tree is a layered hierarchical communication model that is used to notify specific individuals of an event and coordinate ...

  • Disaster Recovery as a Service (DRaaS)

    Disaster recovery as a service (DRaaS) is the replication and hosting of physical or virtual servers by a third party to provide ...

  • cloud disaster recovery (cloud DR)

    Cloud disaster recovery (cloud DR) is a combination of strategies and services intended to back up data, applications and other ...

SearchStorage

Close