Scenario Planning within xP&A - Greater control during times of uncertainty

In these times of geopolitical instability and economic headwinds, there is a growing need within organisations to deliver frequent forecasting with the capability to analyse and compare multiple forward-looking scenarios – typical for times of uncertainty. Two common questions you hear could be:

• How can different internal and external events impact our operations and thus profitability?

• What outcomes can we achieve by using different mitigation strategies?

This type of analysis of the risks and effects of different options can be called scenario planning, impact analysis, or "what-if" analysis. Modern xP&A solutions are the next evolution of traditional FP&A systems and extend the planning process beyond just the finance team, allowing integrated and cross-departmental planning processes that can deliver rapid, automated, and precise forecasts.