Scenario planning and stress testing are two tools that directors and executives should be regularly using to support and guide their decision-making process.
52 Risks Creator and Founder, Peter Deans, recently published an article titled “Stress Rehearsal” for the Australian Institute of Company Directors magazine on the use of scenario planning and stress testing. The article discusses how these tool can assist assess the risks and opportunities arising from climate change and other emerging risks
To read the article go to the AICD website here.
For more on stress testing and scenario analysis read this article: Managing Financial Risk: The Role of Stress Testing and Downside Scenario Analysis