scenario analysis

scenario analysis
(1) In investment analysis, the process of examining the anticipated performance of an investment under a variety of alternative potential interest rate environments.
(2) In bank asset/liability management, the process of modeling the anticipated effects of interest rate changes on the net income or capital of a financial institution. Scenario analysis incorporates assumptions for changes in the behavior of the institution's managers and its customers that are anticipated to be associated with the modeled changes in interest rates. American Banker Glossary
The use of horizon analysis to project total returns under different reinvestment rates and future market yields. Bloomberg Financial Dictionary

Financial and business terms. 2012.

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  • Scenario analysis — is a process of analyzing possible future events by considering alternative possible outcomes (scenarios). The analysis is designed to allow improved decision making by allowing more complete consideration of outcomes and their implications.For… …   Wikipedia

  • Scenario Analysis — The process of estimating the expected value of a portfolio after a given period of time, assuming specific changes in the values of the portfolio s securities or key factors that would affect security values, such as changes in the interest rate …   Investment dictionary

  • scenario analysis — A means of attempting to forecast developments in an industry by using expert opinion to formulate a qualitative view of the future. It should identify major trends and analyse long term environmental influences. Many factors need to be balanced… …   Big dictionary of business and management

  • Scenario analysis — The use of horizon analysis to project bond total returns under different reinvestment rates and future market yields. The New York Times Financial Glossary …   Financial and business terms

  • Scenario planning — [or scenario thinking or scenario analysis] is a strategic planning method that some organizations use to make flexible long term plans. It is in large part an adaptation and generalization of classic methods used by military intelligence.The… …   Wikipedia

  • Scenario (disambiguation) — Scenario may refer to: * Scenario, a brief description of an event * Screenplay, in movies * Scenario (computing), a typical interaction between the user and the system or between two software components * Scenario analysis, a process of… …   Wikipedia

  • Scenario — A scenario (from Italian, that which is pinned to the scenery ) is a synthetic description of an event or series of actions and events. In the Commedia dell arte it was an outline of entrances, exits, and action describing the plot of a play that …   Wikipedia

  • analysis — I noun ascertainment, assay, audit, canvassing, close inquiry, consideration, critical examination, critique, delineation, dissection, examination, exhaustive inquiry, explicatio, exploration, inquiry, investigation, perusal, probe, research,… …   Law dictionary

  • scenario — noun abstract, analysis, brief, capsule, compression, condensation, contents, digest, essence, narrative, outline, plot, recap, recapitulation, report, review, script, sketch, story, sum and substance, summary, synopsis, text Burton s Legal… …   Law dictionary

  • Analysis of algorithms — To analyze an algorithm is to determine the amount of resources (such as time and storage) necessary to execute it. Most algorithms are designed to work with inputs of arbitrary length. Usually the efficiency or running time of an algorithm is… …   Wikipedia

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