Resolved: Forecast growth
Hi, Benjamin,
Thanks for reaching out!
The base scenario you mentioned, being the average growth percentage, typically serves as a foundation for forecasting. The optimistic and pessimistic scenarios are often based on certain assumptions about potential variability in performance.
Optimistic Scenario: Increasing the growth rate by 2% is usually a conservative estimate, reflecting a slight improvement due to favorable market conditions, enhanced company performance, or successful implementation of new strategies.
Worst-Case Scenario: A reduction of 50% can be seen as a more drastic adjustment that assumes either significant market challenges, unexpected downturns, or operational setbacks. This isn't a strict rule but rather a common approach used for stress testing financial models to ensure preparedness for adverse conditions.
These adjustments are made to provide a range of potential outcomes and help stakeholders understand the risks and opportunities associated with the forecast. If you have more detailed context or specific examples in mind, feel free to share, and I’d be happy to assist further!
Best regards!