The Power of Seeing Multiple Futures
March 18, 2024
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3 minute read – While none of us can predict the future, those who anticipate various future scenarios and work through their options tend to fare materially better than those who don’t. Utilizing scenario planning to rehearse for potential future events can boost confidence in decision-making for an unknown tomorrow, while building the strength to handle it along the way.
We have always been impressed by Brett Martinez, and his team at Redwood Credit Union. The consistent strength of their performance in delivering for their members, their community, and their financials, is impressive. There are many factors that led to the success they have created, one of which is their relentless focus on scenario planning. The message that Brett brought to the Governmental Affairs Conference (GAC) is one that can benefit the industry.
If you didn’t have a chance to hear Brett speak at the GAC in early March, we thought you would appreciate the opportunity to read an article published in CUtoday that summarizes his message. Click here to read the full article.
We know that Brett, like us, has been passionate about scenario planning for years. We are equally as excited to see financial scenario planning gain traction across the industry, making its way into more and more strategic discussions. In addition to the summary of Brett’s message, we gathered a few more resources to help decision-makers approach scenario planning and alternate paths.
Consider starting with the exploratory scenarios that the Fed released last month. These scenarios are designed to test the resiliency of the banking industry and take a different path than their typical supervisory stress test for large institutions. The exploratory scenarios can be found here.
In response to the Fed’s Exploratory Analysis, we recorded a new episode of c. myers live, where we discuss our takeaways from this report, and how it can help any institution prepare for the future, regardless of their size. Click here to listen.
You might also find this blog helpful, where we dive into the 4 main components of scenario planning and its importance, as decision-makers plan for a future they cannot predict. Scenario planning should cover a wide range of environments and combinations of events to understand potential challenges and opportunities. We agree with Brett, “it’s never just one thing,” and until we perfect our ability to see the future, we will continue encouraging the industry to proactively embrace scenario planning.