@@ -288,3 +288,25 @@ https://en.wikipedia.org/wiki/Black%E2%80%93Scholes_model
288288* In the real world liquidity dominates the quation.
289289* In context of real options the Black Scholes model is invalid.
290290 * For instance bottle of water could be worthless or worth a person's life depending on context.
291+ 292+ ## Scenario planning
293+ 294+ Scenario planning is an another expression of real options.
295+ 296+ It was popularised by Peter Senge's book:
297+ 298+ https://en.wikipedia.org/wiki/The_Fifth_Discipline
299+ 300+ ### Preparing for the possible
301+ 302+ * Scenarios have the effect that the organisation start communicating and collaborating in ways that it had not seen before.
303+ 304+ * The creation of risk management scenarios has immediate positive benefits beyond just being better prepared for a possible future.
305+ 306+ ### Scaling scenario thinking
307+ 308+ Scenario Analysis or risk management can be applied at any scale. From individual, up to the corporation and the global scale.
309+ 310+ ### Increase your odds in the future
311+ 312+ Prepare for the multiple possible futures and have your options for each in place.
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