Scenario Modelling
Scenario analysis is a process of examining and evaluating possible events that could take place in the future by considering various feasible results or outcomes. With financial modelling, this process is typically used to estimate bottom line impacts and cash flow requirements, especially when there are potentially favorable and unfavorable events that could impact the company.
Are you prepared for the impact of macro economic unknowns on your business? If not scenario modelling is a useful tool to prepare and reduce and negative effect on your business. It is also a great way to consider the financial impact of rapid expansion or entry into new markets.