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How Does Scenario Planning Work in FP&A Activities?

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The purpose of scenario planning is to enhance decision-making and strategic thinking by considering a range of possible futures, rather than relying on a single forecast or prediction. By presenting multiple scenarios, you can effectively convey the uncertainties and risks involved in your business forecasts.

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Transcript: Richard Bernstein

Barry Ritholtz

You get a BA in Economics from Hamilton College. So I was hired to be the quantitative analyst. Quantitative analysis was really starting to gain momentum and everybody thought they needed a quant of one form or another. strategist, to being the chief quantitative strategist. You get an MBA from NYU. Where are we?

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Transcript: Kenneth Tropin

Barry Ritholtz

RITHOLTZ: You guys do everything from quantitative analysis to macro. Well, I’m not forecasting another 20% down, but I do think we could go down 5% or 10%. How do you contextualize the economic data and the broad stamp recession when you’re thinking about managing risk? RITHOLTZ: Right. TROPIN: Sure.

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Transcript: Savita Subramanian

Barry Ritholtz

When all the experts and forecasts agree, something else is gonna happen. So, so given this, how do you draw a price target or a market forecast from, here’s the average of all the Wall Street strategists, let’s say it’s plus 8%. We were forecasting something that didn’t make any sense. Yes, I know.

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