scenario analysis definition
scenario analysis means the analysis of the impact of a combination of adverse events;
scenario analysis means a component of integrated resource planning that analyzes and assigns probabilities to a variety of possible future conditions and the options available to deal with them. Its primary purpose is to facilitate better resource planning decisions by assessing and quantifying the economic and other risks related to a particular decision.
scenario analysis. - means the assessment of the resilience of the bank or of a portfolio to a given scenario that comprises a set of risk factors, which should have all of the following characteristics:
More Definitions of scenario analysis
scenario analysis means a tool that challenges assumptions made for the purposes of risk analysis. A key feature of the scenario analysis is that it enables RFIs to explore alternatives that may significantly alter the basis for “business-as-usual” assumptions. Accordingly, scenario analysis needs to consider extreme but plausible events.