FINANCIAL MODELLING AND FORCASTING TECHNIQUE

Build more powerful and more accurate forecasting models to better analyze financial data, predict revenues and costs, assess risks—and justify critical business decisions.

Build the model. . .generate the forecast. . .drive the business! Create more powerful and accurate forecasting models that steer you to fast-track, business-improving decision making!

How You Will Benefit

• Create effective financial models that meet your business needs
• Quantify the uncertainty inherent in forecasting models with various risk analysis techniques
• Make better, more profitable business decisions using advanced financial modeling methods
• Evaluate patterns in your historical data
• Identify and utilize key business drivers and integrate them into your forecast
• Effectively communicate the results of your models to team members and senior management
• Designing a financial model
• Structure of financial models
• Developing simple to sophisticated financial models
• Immediately applying the newly acquired knowledge to “real world” problems, which will expand your knowledge of finance.  
• You will be able to develop models for any problem as long as you know the financial theory and mathematics needed to solve it conceptually. 
• Identify the main sources of model risk
• Explain the potential consequences of neglecting model risk
• Model optimisation
• Model sensitivity testing
• Testing and auditing models – the function of independent risk oversight (iro) units
• Forecasting using models
• Monte carlo simulations
• Understand different types of financial models and when each should be applied
• Construct models that are financially rigorous in excel
•  

COURSE OUTLINE

• WHAT IS A MODEL
• IMPERATIVES OF MODEL CONSTRUCTION
• TYPES OF MODELS
• BUSINESS VERSUS FINANCIAL MODELS
• WHAT IS FINANCIAL MODELLING
• TYPES OF FINANCIAL MODELS AND THEIR APPLICATIONS
• WHAT IS FORECASTING
• TYPES OF FORECASTING TECHNIQUES
• FORECASTING USING MODELS

• MODEL RISK AND ITS SOURCES
• CONSEQUENCES/EFFECTS OF MODEL RISK
• MODEL OPTIMISATION
• MODEL SENSITIVITY TESTING
• TESTING AND AUDITING MODELS
• USE OF MONTE CARLO SIMULATIONS
• CASE STUDIES ON FINANCIAL MODELS CONSTRUCTION USING EXCEL.

Who Should Attend

Analysts and executive-level managers who work with financial models and need a refresher course on modeling methods—as well as experienced financial professionals who have not built models on a regular basis.

It is a subject that helps to project business  into future and to establish

a good model for such business.

Alegbeleye Clara Olukemi