You'll be looking at what effect variable inputs,
economic factors and scenario based inputs can have on models. The course also
takes a look at the vital importance of the way in which data is presented, and how this can be a strength rather than a weakness.
Course overview
Introduction – Levels of Complexity
- What are real world complexities?
- Why are businesses concerned about these real world
complexities?
- What challenges do real world complexities present?
- Can I test a model to determine the effects of real
world complexities?
- Which complexities are particularly difficult to include in a business financial model?
Variable Inputs
- What are variable inputs in relation to modelling real
world complexities?
- How can the model deal with unpredictable or "actual"
inputs?
- Should I include non-financial calculations to drive
the costs and/or revenues?
- Which ingredients are required to calculate the sales
revenue?
- How are the calculation blocks for the sales revenues constructed?
Economic Factors
- What economic factors is a financial model likely to
include?
- Which ingredients are required to calculate the
escalation factor?
- How is the calculation block for the inflation factor
constructed?
- What should I consider when modelling cash flows which
are denominated in different currencies?
- How do I set up the model to deal with different
currencies?
- What do I need to know about interest rates?
Scenarios
- Why might you want to test different scenarios in a
model?
- What if my assumptions turn out to be inaccurate?
- How can I efficiently use my model to test a variety
of assumptions?
- What calculations need to be included?
- How can I gain experience of using the model in this way?
Reporting Requirements
- What do I need to know about reporting?
- Does FAST apply the same rules to presentational
sheets?
- How can I incorporate the non-financial data in the
output presentation?
- What is a "dashboard" in the context of financial modelling?