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    Kavitha Rajagopal
    Scenario planning involves making assumptions about potential futures and how a business's environment may change over time. It identifies specific uncertainties and possible realities that could occur in the future. For example, scenario planning is used extensively in the financial industry to strategically manage distressed customers. Banks generate different scenarios to achieve the most optimal outcome, such as ensuring financing is repaid, which may involve refinancing, capital injection, enforcing collateral, or legal action. The selected scenario provides the financial institution with the most benefit or least loss depending on the parameters set to achieve objectives.

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    Buss 6

    Uploaded by

    Kavitha Rajagopal
    3 views1 page
    Scenario planning involves making assumptions about potential futures and how a business's environment may change over time. It identifies specific uncertainties and possible realities that could occur in the future. For example, scenario planning is used extensively in the financial industry to strategically manage distressed customers. Banks generate different scenarios to achieve the most optimal outcome, such as ensuring financing is repaid, which may involve refinancing, capital injection, enforcing collateral, or legal action. The selected scenario provides the financial institution with the most benefit or least loss depending on the parameters set to achieve objectives.

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    Business Planning

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    Scenario planning involves making assumptions about potential futures and how a business's environment may change over time. It identifies specific uncertainties and possible realities that could occur in the future. For example, scenario planning is used extensively in the financial industry to strategically manage distressed customers. Banks generate different scenarios to achieve the most optimal outcome, such as ensuring financing is repaid, which may involve refinancing, capital injection, enforcing collateral, or legal action. The selected scenario provides the financial institution with the most benefit or least loss depending on the parameters set to achieve objectives.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    3 views1 page

    Buss 6

    Uploaded by

    Kavitha Rajagopal
    Scenario planning involves making assumptions about potential futures and how a business's environment may change over time. It identifies specific uncertainties and possible realities that could occur in the future. For example, scenario planning is used extensively in the financial industry to strategically manage distressed customers. Banks generate different scenarios to achieve the most optimal outcome, such as ensuring financing is repaid, which may involve refinancing, capital injection, enforcing collateral, or legal action. The selected scenario provides the financial institution with the most benefit or least loss depending on the parameters set to achieve objectives.

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    © All Rights Reserved
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    QUESTIONS:

    Scenario planning is making assumptions on what the future is going to be and how

    your business environment will change overtime in light of that future. More

    precisely, Scenario planning is identifying a specific set of uncertainties, different

    “realities” of what might happen in the future of your business.

    What are your views on the following questions:

    1. Provide an example of scenario planning based on you experience or other

    experience.

    ANSWERS

    Scenario planning process is being extensively applied to strategically manage

    distressed customers by financial institutions. As a banker, generating different

    scenarios to achieve the most optimum outcome in ensuring that financing provided

    to a customer is being repaid eventually is pertinent. The selected scenarios may

    involve refinancing, capital injection, enforcement of collateral or guarantees or

    ultimately resorting to legal suits. The selected scenario should provide the financial

    institution with the most benefit or the least loss, depending the parameters set to

    achieve the desired objective(s).

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