If you are a parent, you use "what if" scenarios every day with your child. What if you get lost? What if you saved your allowance rather than spend it? What if your friends ask you to…? What if you study for that test? What if a stranger offers you a ride?

These questions are not meant to scare or annoy (although your child may disagree). They are meant to help your child be prepared, recognize opportunities, avoid mistakes, achieve their goals, and stay safe. Posing these questions helps you breathe easier.

The same is true for running "what if" planning scenarios. They can help you:

• Be prepared by measuring the impact of negative market forces allowing you to develop contingency plans
• Recognize opportunities by testing the effect of introducing a new product or running a promotion
• Avoid mistakes by measuring the costs versus benefits of something like opening a new branch
• Achieve your goals by revising your forecast and adapting to changes that seem imminent
• Stay safe by running various interest rate scenarios and position your balance sheet accordingly

Pose the questions and breathe easier!