Scenario Analysis

If you can't predict the future, and few of us can in today's turbulent economic times, the next best thing is to set up scenarios, lots of them.

Scenarios let you explore how you might behave (or decide) if things are better or worse or just different.

Unlike budgeting where you care about who changed what number, scenario analysis is about understanding what's behind the numbers — the most critical assumptions, volume and rate impacts, and especially what's driving material changes to the P&L and cash flow.