In the context of scenario analysis, what do pre-conditions refer to?

Pre-conditions in scenario analysis refer to the essential situations or conditions that must be established or true before a scenario can commence. They set the stage for the scenario to unfold effectively, ensuring that the necessary context, resources, or statuses are in place to allow the scenario to occur. This concept is critical because it helps analysts understand the prerequisites for a scenario, which aids in correctly defining the beginning state of the analysis.

In scenario analysis, identifying these pre-conditions helps in clarifying the assumptions made and ensuring that stakeholders have a common understanding of the circumstances under which the scenario will operate. By establishing and validating these pre-conditions, analysts can anticipate potential issues and ensure that all necessary factors are accounted for before exploring the scenario in detail.