Which of the following is NOT a benefit of scenario planning?

Prepare for the Management and Organization Module 6 (06-MGMT-ORG) – Strategy Exam. Engage with flashcards, multiple choice questions, hints, and explanations. Excel in your exam!

Scenario planning primarily serves to enhance an organization's ability to adapt to various uncertain futures by envisioning a range of possible scenarios. Each of the benefits of scenario planning, such as developing flexible strategies, preparing for uncertainties, and visualizing potential future environments, underscores its utility in strategic management.

While scenario planning is an effective tool for identifying and preparing for potential risks and uncertainties, it does not eliminate all risks associated with future events. The very nature of uncertainty means that risks can never be completely eradicated; they can only be managed more effectively. Organizations can create flexible strategies and prepare for various scenarios, but they must accept that some level of risk will always exist. Therefore, stating that scenario planning eliminates all risks is inaccurate and highlights why this choice stands out as the correct answer to the question.

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