About Scenario Methods as a Tool for Risk Management
Our members find a scenario-based approach to risk management highly relevant today, especially considering the insights we are gaining about the potential impacts of the ongoing energy transition. These uncertainties have significant implications for the effectiveness of our organizations' risk management practices.
Scenario analysis is a vital tool that can enable organizations to explore future risks without relying on rich historical data as a basis for analyses. However, this also means scenarios used must be robust and plausible for them to be actionable. Having well-developed scenarios is essential for broadening our understanding of the possible future outcomes and identifying potential risk mitigation alternatives. Best practice scenarios are especially important in multi-stakeholder environments, as they foster a shared understanding and common vocabulary for discussing the potential futures.
Up Next: Workshops on Developing Energy Risk Scenarios
The working group leaders are planning a series of workshops in 2025, beginning with developing best practice scenarios. To learn more and sign up, visit the workshop information page…
Working Group Expressed Interests
During past meetings, members have expressed interest in pursuing several best practices through this working group, including:
Enhancing existing frameworks for scenario analysis to focus on energy risk.
Clarifying the differences between scenario planning and stress testing.
Creating a shared list of best practice drivers to consider.
Distinguishing between clearly defined “drivers” and a “story” that enhances plausibility.
Publishing standard terminology for scenarios.
Exploring organizational best practices.
Identifying best practices in scenario modeling.
Reviewing available scenario modeling tools today.
As we begin our workshops in 2025, we look forward to exploring these topics and others. Join us! Contact the CCRO Executive Director at info@CCRO.org
Catch Up With Our Short Videos from past Meetings
Hosted by Advocate member Chris Dann of Publicis Sapient, our first deep dive explored the origins of scenario planning, the process for developing actionable scenarios, and potential best practices for scenario analysis. For anyone that would like to be a part of this group, our session was recorded. See below, we offer the discussion consolidated into eight short video clips to help you get motivated to join us in this initiative:
