Surely, it does, That is the objective of scenario planning in strategy building and implementing. Since any enterprise connotes risk-taking, plans may not get implemented as envisaged due to various uncertainties, and the entire business architecture may crumble. In case, the top management takes cognizance of such uncertainties before hand by building alternate plans that would cater to the business environment taking a  certain turn, then the entrepreneurs can take that direction quickly without fumbling itself  or looking novice. This is precisely what happens when the strategy emerges (as talked about by Henry Mintzberg). This necessitates that the enterprise follows the policy of incrementalism, and prepares its capability slowly, surely  and cautiously, which helps in building the solidity of the organization for withstanding the onslaughts of future risks. 

yes, scenario planning Is good for strategic risk management. Risk Is dangerous but inévitable for business practice. One way to minimise the riskiness in risky ventures Is through scenario planning...it provides management with artificial reality and allows room for trial and error.

I agree with Debi and Justin. Scenario planning has its roots in military thinking (Amet et al., 2013; Mintzberg et al, 2009) and has many advantages such as removing or minimizing the impact of emotion and reactionary responses to changes in the business environment. It helps leaders to have a clear head in the midst of chaos or uncertainty when leaders envision or anticipate risks and when they  have contingency plans to mitigate those risks (Sloan Mgt. Rev., 1995). Additionally, it is a good way to test strategies and generate new ideas. Seminal and contemporary literature supports the virtues of scenario planning.

Ref.

Amer, M., Daim, T. U., & Jetter, A. (2013). A review of scenario planning. Futures, 46(0), 23-40. doi:http://dx.doi.org.library.capella.edu/10.1016/j.futures.2012.10.003

Mintzberg, H.; Ahlstrand, B.; & Lampel, J. (1998). Strategy Safari: A Guided Tour through the Wilds of Strategic Management, Free Press.

Scenario planning. (1995). Sloan Management Review, 36(3), 7. Retrieved from http://search.proquest.com.library.capella.edu/docview/224962921?accountid=27965

Yes, from the perspective that people stop and examine possibilities BEFORE one of them become fatality. It may provide means of preventing and administrating its bad effects.

I would suggest that scenario planning can be one of the most practical strategic  approach of ERM as uncertainty is business is almost certain. Therefore to avoid panic or caught unprepared in facing unexpected circumstances, contingency  or alternative plan of action will be crucial . .

Unfortunatelly scenario planning is not actually helpfull since ignores the interaction among exogenous variables. I hardly remember anyone from my business experience to have a good understanding of the correlation among exogenous vars as well as how this correlation changes. Simulation is a step further whcih is actually a must for the banking sector. Simulation grasps all intermediate levels as well as tail risks. If someone goes to the tail risks by scenarios will be in extremes and receive a huge bandwidth of the criterio vars.

Dear Mr. Dattagupta:

                                 Scenario planning is useful for creating new ideas. It was born when the oil crisis in 1973,  during one of the israeli-arab wars. It is very useful for thinking "what may happen if". Shell made scenarios in which arab countries belonging to OPEC would use their bargaining power against petroleum companies. What happened was very similar, although in the context of a war.

                                 The other important example I know was the decision ot the norwegian government to drill/construct an oil platform in the North Atlantic when the URSS existed. They made scenarios in which this country would open itself to western economies, as it eventually did during Gorbachov´s rule.

                                 I would suggest to read these authors: Kees Van der Heijden, Peter Schwartz ("The Art of the Long View", recommended) and articles by Arie de Geus.

                                 To be short, I understand it helps a lot to avoid risks in companies. 

Regards

Gustavo Concari

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Scenarios are necessary in organizations that operate a dynamic dynamic environment