In this article, we will explore why and how Scenario Planning can significantly benefit financial forecasting. We will also discuss its advantages and shortcomings.

This year, responses were gathered from 385 finance practitioners, covering companies of all sizes, from all regions, and industries.

The author considers several prerequisites to successful Scenario Planning and financial modelling in this article. She also explains how to avoid pitfalls in financial modelling.

Scenario Planning is a common topic among FP&A professionals and the software and services vendors who support them. However, the mechanics of scenario modelling is the layer that diehard modellers want to understand and operate within. This article explores the most common techniques used for financial scenario modelling.

Check out the recording of this digital FP&A Circle to learn myths and misconceptions of Rolling Forecast and Scenario Planning. Senior finance practitioners from Honeywell Process, Management & Controls (PMC), Hitachi Energy, CommScope and Pigment have shared their practical insights.

To succeed in Scenario Planning, an organisation should assess its ability to deliver results in three key areas: data quality, technology and people.