The Ledger
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Tag Archives: scenario analysis
FP&A Trends: How FP&A Evolved and Optimized Through the Pandemic
July 15, 2022
“Finance professionals are empowered to present data to cross teams on the best case, worst case, and most likely scenarios that could arise. This helps cross-teams understand how their decisions affect the rest of the organisation and make FP&A a strategic resource helping them navigate business objectives.”
CFO Dive: 3 Ways CFOs Can Help Tackle Supply Chain Disruptions
June 29, 2022
“CFOs can use scenario planning to help identify, evaluate and compare the alternatives from a comprehensive financial, operational and tax perspective when facing complex decisions.”
FP&A Trends: Financial Planning and Analysis: Relevant, Reliable and Agile
May 10, 2022
“Scenario Planning is key, but it needs to be predicated on the right business drivers, run at the right frequency, and address the right business questions.”
CFO Journal: Moving Enterprise Business Planning Into Action
April 8, 2022
“CFOs are uniquely positioned to lead the coordination needed for an EBP program, given their experience partnering with operations, manufacturing, sales and marketing, engineering, the back office, and external allies. A key component of any EBP program is establishing consistent and current data from all sources—another goal that most CFOs share—that can drive advanced scenario modeling and predictive analytics to produce timely and more accurate plans.”
CFO Magazine: Prakash Hariharan: ‘CFOs Need to Have a Good Partner Ecosystem’
March 14, 2022
“However, we believe in order for you to be able to manage a problem like [inflation], you need to have the ability to make some forward-looking decisions coupled with a few scenarios. Think about scenario analysis as a method that organizations are now using to make flexible medium to long-term plans. You start with identifying one of your driving forces — it could be around revenue, cost, or margin — and then you identify the uncertainties within this broader objective, and then you develop models. And as the scenarios play out, you get to execute a set of predefined actions.
All of that requires you to get data insights across the enterprise, and maybe outside the enterprise as well. A few forward-looking statistical models. And as you learn more in terms of the evolving situation, you need to act — you need to hone in on one of the [levers] or scenarios that you can take a set of actions.”
FP&A Trends: What Skills Should FP&A Develop by 2030
March 7, 2022
“The term Financial Planning and Analysis is evolving to the broader concept of Scenario Planning, with a rolling planning window opposed to a fixed annual 12-month focus; planning will be a single integrated strategic financial and operational model with on-demand frequency versus 3–5-year corporate plans. The Scenario Planning approach is also highly technological with automated and advanced analytical systems that allow an output within 1 to 3 hours, versus the old planning model driven by manual Excel spreadsheets that would require weeks or even months to consolidate. Finally, the new approach to planning allows multiple scenarios with supporting documentation that facilitates decision-making.”
CFO Dive: 4 CFO Scenarios – and Fixes – for Inflation
February 17, 2022
““Part of taking the scenario-based view is making sure that leaders — CFOs and other leaders — are prepared no matter what future comes to pass,” according to Andrew Blau, a managing director at Deloitte. “We stress the importance of being prepared for all the scenarios.””
CFO Journal: The Inflation Outlook: Preparing for the Unpredictable
January 14, 2022
“In order to help executives prepare for a future no one can predict, Deloitte recently developed a set of scenarios to explore the question: How might inflation evolve in the U.S. over the next three years, and what could be the impacts on large organizations?“
