If FP&A professionals previously thought we had a tough job, the new reality of a very different world after COVID-19 will make our previous issues seem like a walk in the park. Where should we focus our efforts and how can we provide the businesses with the best ways to move forward?
Scenario analysis, sensitivity analysis and what-if analysis are very similar concepts and are really only slight variations of the same thing. All are very important components of financial modelling – in fact, being able to run sensitivities, scenarios and what-if analysis is often the whole reason the model was built in the first place.
Most recently, I have been observing significant changes in business models in many organisations around the globe. Many FP&A Board members say the future can no longer be predicted based on only historical data since we are living in the environment of “unknown unknowns”.
Following on from the success of the 21st London FP&A Board, we had the pleasure of attending the 8th London FP&A Circle which shares the latest professional trends and developments with the UK FP&A community, open exclusively by invitation to senior and mid-level finance practitioners.
Strategic investment decision-making involves the process of identifying, evaluating and selecting among projects that are likely to have significant impact on the organization competitive advantage. More specifically, the decision will influence what the organization does, where it does and how it does it.