Planning for the Worst-Case Scenario
In the face of a recession and general economic uncertainty, many companies are starting to strategize and prepare for worst-case business scenarios.
This planning, while unusual and difficult to quantify in terms of a return on the investment, is conditioning the companies for the pressures of the unknown. Usually, these scenarios can be described as extremes, and while they’re unlikely, they can have a catastrophic impact on a business.
More than anything, scenario planning will spread awareness from the top of the command chain, all the way down. Additionally, it will instill a sense of confidence in your employees in the event that something disruptive does happen.
There isn’t a set rubric of guidelines when it comes to scenario planning. Consider your business’s particular situation, and think accordingly. For example, if you believe that there is a specific threat to your company, plan with this in mind.