Principle
The analysis is designed to allow improved decision-making by allowing consideration of outcomes and their implications.
Scenario analysis can also be used to illuminate "wild cards." For example, analysis of the possibility of the earth being struck by a large celestial object (a meteor) suggests that whilst the probability is low, the damage inflicted is so high that the event is much more important (threatening) than the low probability (in any one year) alone would suggest. However, this possibility is usually disregarded by organizations using scenario analysis to develop a strategic plan since it has such overarching repercussions.
Read more about this topic: Scenario Analysis
Famous quotes containing the word principle:
“What is an atheist, but one who does not, or will not, see in the universe a ruling principle of love; and what a misanthrope, but one who does not, or will not, see in man a ruling principle of kindness?”
—Herman Melville (1819–1891)
“The principle of avoiding the unnecessary expenditure of energy has enabled the species to survive in a world full of stimuli; but it prevents the survival of the aristocracy.”
—Rebecca West (1892–1983)
“The selfish spirit of commerce, which knows no country, and feels no passion or principle but that of gain.”
—Thomas Jefferson (1743–1826)