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Workshop overview

Financial modelling requires a broad skill set: Accounting, finance, spreadsheet, design, presentation and communication skills are all used. This workshop brings together those skills and shows how they can be applied to produce best-practice financial models.

Why you should attend

You will gain skills in producing models that are efficient, user-friendly, easy to adapt and feature-rich. Your models will generate key insights and support for analysis, reporting, decision-making and management.

Key takeaways

Learn the objectives, principles and methods of financial modelling
Gain expertise in spreadsheet functions and tools used to build efficient and well-presented financial models
Master and apply the essential finance principles underlying the key concepts of value, risk and return
Discover techniques to make models easily extended, maintained and adapted
Develop sophisticated "what-if" and scenario analyses
Build clearly understandable, "bullet-proof" and user-friendly models

Who should attend

The following roles will benefit from the workshop:

Financial controllers
Commercial, financial, investment, planning, risk and systems analysts
Management, operations, commercial and financial accountants
Performance and planning, reporting and analysis, capital and funding, treasury, project and business and support managers
Principal advisors
Chief financial officers

Content

Introduction to financial modelling objectives and outcomes

The true breadth and scope of financial modelling
The process of financial modelling

How the financial system we are modelling responds to its drivers
Key metrics and how they feed into the decision-making process

Generating key metrics and performance indicators

Understanding the business being modelled
Understanding drivers, constraints, inputs and outputs

How are key metrics derived?
Quantifying key metrics such as value and risk

Financial modelling as a valuable management tool

Reporting on how realised key metrics compared with modelled metrics
What caused variances?
What “trajectories” are key measures taking?

Using financial models for scenario, sensitivity, attribution, and what-if analysis
Risk assessment: gaining a sense of risk exposure

Finance concepts and financial functions

Applying finance principles and functions
Key concepts: Present and future value, discount and hurdle rates, cost of capital

Spreadsheet financial functions: NPV, XNPV, IRR, NOMINAL

Spreadsheet functions, tools and features used in financial modelling

This section of the course presents a broad scope of spreadsheet applications, some are simple and others are more complex. Their purpose is to illustrate many of the capabilities - some of them not well known - of spreadsheets. Almost all of the examples are interactive.

Logical, referencing and aggregation functions
Arithmetic and ranking functions
Error handling functions
Date functions

Auditing tools
Custom formats
Charts and templates
Keyboard shortcuts

Accounting and finance concepts that underlie modelling

Financial modelling builds on accounting and finance concepts. This section reviews the accounting and finance theory that is needed for effective financial modelling.