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:
“Thus it seemed that this one hillside illustrated the principle of all the operations of Nature. The Maker of this earth but patented a leaf. What Champollion will decipher this hieroglyphic for us, that we may turn over a new leaf at last?”
—Henry David Thoreau (1817–1862)
“We rail at trade, but the historian of the world will see that it was the principle of liberty; that it settled America, and destroyed feudalism, and made peace and keeps peace; that it will abolish slavery.”
—Ralph Waldo Emerson (1803–1882)
“No habit or quality is more easily acquired than hypocrisy, nor any thing sooner learned than to deny the sentiments of our hearts and the principle we act from: but the seeds of every passion are innate to us, and nobody comes into the world without them.”
—Bernard Mandeville (1670–1733)