Scenario planning is getting a stress test
Wait-and-see approach from business leaders is prudent but risks paralysis
Add BT as a preferred source
HOW can companies plan ahead when it feels like tomorrow may look nothing like today? It’s the question hanging over boardrooms as business leaders contend with a barrage of challenges – from AI disruption and geopolitical tensions to tariffs and financial market fluctuations driven by how trigger-happy the US president is on social media. The feeling of heightened uncertainty is palpable.
US airline companies are withdrawing full-year financial guidance while carmaker Ford suspended making forecasts on its outlook, citing “substantial industry risks”. From Unilever to HSBC, corporations are having to make explicit warnings over unpredictable policy and uncertainty over interest rates and consumer confidence.
In this climate, it’s no wonder the tools used to stress test corporate strategies are under scrutiny. For decades, scenario planning has helped organisations map out a range of futures based on variables including economic shifts, technological leaps and regulatory changes.
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
Are Keppel’s dividends truly unsustainable – or just misunderstood?
COEs for large cars up 4.3% at S$126,236, mainstream cars near S$125,000
