Analytic models are rarely static. Their aim is to model the organisation in such a way as to allow managers to investigate what is actually going on and to assess changes to the way it operates.

Q: What do motorists, composers, musicians, architects, engineers, and builders have, that FP&A professionals don't?

A: Read on...

Financial model definitions can be tricky. Financial models are often dependent upon numerous functional areas and academic disciplines, such as accounting, finance and statistics. These disciplines may have differing uses of the same terminology. Model risk management has also drawn on numerous disciplines in its evolution.

Through the financial crisis, the advent of drill down database capabilities and with direction from the Federal government, financial modeling is evolving into both a defined art and science.

No matter for a budget season or continuous forecasting: the human factor is randomly covered in the process that may bring the best and the worst of management culture. A special eye on bias during the Performance Management and goal setting process is essential for process quality and to the FP&A skillset.

As far as I know, we are not legally required to forecast. So why do we do it? My sense is that forecasting practitioners rarely stop to ask themselves this question. This might be because they are so focussed on techniques and processes.