If you own a business, you are familiar with uncertainty and risk—and likely with many of the tools used to mitigate it.
The ongoing COVID-19 pandemic has introduced more unpredictability—even as epidemiologists warned of a second and third wave—increasing the value of financial modelling.
Forecasting can make the difference between surviving a global crisis and thriving in the next normal.
"This isn’t a planning exercise. This is a practical exercise," says BDO's Financial Advisory Services leader, Mike Devonshire.
In our video, Mike walks through the key benefits of maintaining a robust financial model in uncertain times, including:
- decision-making approaches (data-driven vs. intuitive)
- financial models (high-level, directional vs. detailed, operational)—and their uses
- financial forecasting—and how to adjust key assumptions to make your model effective during a global crisis
- KPIs—and how to refine them for changing times
- capital-raising cycles—and the importance of identifying and mitigating risk during the COVID-19 pandemic
- M&A transactions—and the importance of modelling the impacts of coronavirus on cash flow and lending covenants