Donald Trump has taken charge, Malia Obama is in rehab, and Bill Clinton is ravaged by cancer, proclaims this weekâs Trump mouthpiece the âNational Enquirer,' for good measure adding that actor Alec Baldwin only dislikes Trump because his ex-wife Kim Basinger had a crush on the president-elect.
Definition of 'Scenario Analysis'. Tweet. Scenario Analysis is a process to ascertain and analyze possible events that can take place in the future. Definition: Scenario Analysis is a process to ascertain and analyze possible events that can take place in the future. This is an important tool in the world of finance and economics, and is used extensively to make projections for the future.
8. Use the results of the scenario analysis to make a business decision. As discussed, there are many practical applications for using scenarios, including risk management; strategy and planning; underwriting and pricing decisions; and capital management.istorical scenarios are easier to design, but hypothetical scenarios are more flexible. Stochastic scenarios are based on simulations -- typically between 1,000 and a million -- and are driven by adjustments to the parameters and input variables, based on their historical distributions and co-variances.