%0 Journal Article %A Julian N. Abdey %A Jared S. Franz %A Wesley K. Phoa %T Scenario-Driven Adaptation to Emergent Risks %D 2022 %R 10.3905/jpm.2022.1.419 %J The Journal of Portfolio Management %P jpm.2022.1.419 %X In order to be resilient to unmodeled risks, an investment management process needs to incorporate a discipline of continuous scenario analysis. The authors describe the essential elements of such a discipline: key organizational and operating principles, the scenario building process, quantitative specification of scenarios, and application to portfolio management. They illustrate with several recent case studies: the COVID-19 pandemic, the 2021–2022 surge in global inflation, and the 2022 Russian invasion of Ukraine. They also list some potential pitfalls of scenario analysis. %U https://jpm.pm-research.com/content/iijpormgmt/early/2022/09/07/jpm.2022.1.419.full.pdf