As companies navigate today’s complex business and geopolitical landscape, CFOs have seen risk management rise to the top of their priorities. They’re increasingly using scenario planning as a key tool to manage risk and strategically unlock new value-creation opportunities. This involves three approaches: 1) Being rigorous and cross-functional, integrating scenario planning into the company’s strategic framework; 2) Being outward looking and externally informed by staying ahead of the curve on regulatory updates and policy trends; and 3) Continually refreshing and monitoring scenarios, incorporating new and emerging data, and translating insights into compelling stories that help stakeholders grasp not only the financial implications of scenarios, but also the strategic rationale behind key decisions.
https://hbr.org/2024/12/its-time-for-cfos-to-rethink-scenario-planning
