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What-if analysis or why is it important for good financial planning software?

Spreadym

It involves evaluating the impact of various "what-if" situations on financial flows projections, business performance measures, or outcomes. You can analyze the potential returns and risks associated with different investment options by adjusting variables such as interest rates, market conditions, or investment durations.

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A Practical Guide for the New CFO

CFO Talks

Understand and Mitigate Risks: A CFO must have a comprehensive understanding of the various risks the company faces, including operational, financial, and strategic risks. This involves developing risk management strategies to prevent or mitigate potential adverse impacts on the company.

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ESG-driven growth: Stakeholders have greater expectation but boards lack commitment

Future CFO

66% of leaders combined see the top two advantages to integrating ESG factors in their corporate strategy as first, long-term value through new ESG-driven products and services, and second, resilience to ESG risks. 83% of respondents said they would like mandatory reporting of ESG performance measures against global standards.

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Modernising finance reporting in support of ESG

Future CFO

To deliver sustained profitable growth and meet new disclosure obligations CFOs will have to embed sustainability into business decisions by connecting material issues to value creation and risk management. They will act as a global baseline for providing, a more holistic picture of corporate performance.

Finance 59
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From Controller to CFO: What Changes?

CFO Talks

They work in tandem to develop and maintain performance measurements, with the Controller specifically tasked with reviewing control weaknesses. Strategic Financial and Risk Management: The CFO is the architect of the company’s financial strategy, including tax and risk management strategies.

CFO 52
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Differences Between Budgeting and Forecasting in Business

Spreadym

Performance Measurement Budget: Budgets are primarily used to measure actual performance against planned performance. Forecast: Forecasts are not used for performance measurement in the same way as budgets. This helps in risk management and allows for better decision-making in uncertain environments.

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What is Financial Planning and Analysis (FP&A)?

Spreadym

These models help assess the potential outcomes of various financial decisions and aid in strategic planning, risk analysis, and sensitivity analysis. Performance Measurement: FP&A establishes performance metrics and key performance indicators (KPIs) to measure and monitor the organization's financial performance.