Take over the company risks with scenario planning and modeling
Nothing is so certain than uncertainty. With scenarios you can plan and evaluate the effect of external risks towards your company, its goal, and forecasts. With scenario planning the company management can plan and make tactics to handle changes.
Clear process and guidelines with desire to improve the way of work are the key elements for successful scenario planning and modeling. Even though making scenarios cannot be the purpose itself, it is important to remember its benefits to risk management. For example, energy companies have used environment scenario planning for a long time to forecast the need for heating and cooling. Due to COVID-19, scenario planning has become a closer to company management everyday life.
Once the guidelines and way of thinking are set – the tools for scenario planning and modeling will follow.
Scenario planning done easy
With Clausion, you can do scenarios in different ways: scenario versioning or high-level scenarios.
With scenario versioning a reduced chart of accounts is used as a base of planning. Additionally, income statement, balance or finance sheet are planned in a specific account level.
High level scenario planning is focused on one KPI (e.g., turnover, ebit) and the aim is to find all the risks related to this – positive and negative.
When risks have been recognized, actions to lower the impact of risk are listed.
Clausion consultants have experience on hundreds of planning environments. Over the past year we have helped our customers especially implementing scenario planning.