Scenario Planning (3.6.2)

Question 1

What is a contingency Plan?

Answer 1

It is a “plan B” that helps a business address specific situations or incidents that may or may not be out of its control. A contingency plan is the way that your team should react if there is something that interrupts the normal course of business. (Something you put in place just in case something goes wrong. This is important to have when reacting to external shocks)

Question 2

What is scenario planning?

Answer 2

You have to visualize many potential futures for the business and plan what will happen if it takes place. Proactive approach to capitalize on opportunities or react to threats with more speed.

Question 3

What are some examples of Scenario Planning?

Answer 3

-Risk Assessments
-Loss of Key Staff
-External Shocks
-New Competition
-New Technology
-Changes in Consumer Trends