By predicting and planning for several possible outcomes and their implications, you are more likely to be prepared for the outcome that actually does occur.
Scenario Analysis Example:
Before WWI was triggered, there were a number of defence alliances between countries in Europe. If one country declared war on another, other countries would automatically enter the conflict.
The declarations of war by different countries were for different scenarios. Defence alliances allowed countries to be prepared for all potential outcomes.
Following the assassination of Austria’s archduke, Franz Ferdinand, Austria-Hungary declared war on Serbia. The alliance meant they had Germany’s backing. Then Germany declared war on Russia.
German troops then marched on France and took a route that went through Belgium. Since Britain had agreed to maintain the neutrality of Belgium, they declared war on Germany.
Because the war scenarios had been planned for before they occurred, it allowed countries to act immediately once they occurred.
Hesitation in war time can mean annihilation. The defence alliances that had been created as a result of scenario planning that allowed countries to respond to military aggression immediately.
“By failing to prepare, you are preparing to fail.” ― Benjamin Franklin
> Scenario Analysis on Wikipedia.