As businesses pivot forecasting approaches against a backdrop of increased uncertainty and unpredictability, Airmic is releasing a new guide on scenario analysis for risk professionals.
Scenario analysis can be used to test the strategic and operational plans and activities within the organisation, and how they fit together.

Produced in with ORIC International and Barnett Waddingham, the guide aims to help risk professionals lead scenario analysis with peers and experts within, and outside of, their organisation to imagine potential visions of the future that could affect the organisation’s strategy, operations and financial health.

“The world is experiencing a step change as the power of artificial intelligence becomes more visible," said Julia Graham, CEO, Airmic. "Scenario analysis will help organisations to make better informed decisions in support of inevitable changes to their strategy and business models."

Airmic has previously emphasised the value of scenario analysis and planning in preparing organisations for the climate transition and for increasing geopolitical tensions. Its report, Navigating Geopolitical Risk, launched in collaboration with the Chartered Institute of Internal Auditors on the anniversary of Russia’s invasion of Ukraine, is one such example.

“Many boards are blindsided by risk events that come out of the blue. In a world where the pace of change is continuously increasing, anticipating and responding effectively to nonfinancial risks is a growing challenge," added Caroline Coombe, CEO, ORIC International. "The use of scenario analysis helps firms identify blind spots and to better understand and respond to non-financial risk."

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