Financial Modelling [Day 2]
This day takes subjects covered in the preceding day 1 to the next level of sophistication. Advances on the second day include:
- Simple logic -> Complex logic
- Small, single worksheet models -> Larger multi-worksheet models
- Core spreadsheet features -> advanced spreadsheet features (e.g arrays)
- Core finance concepts -> extended finance concepts (e.g. term structures of rates, inflation, accounting for risk / uncertainty)
- Core modelling practice -> Extended modelling practice (e.g. dealing with one-off or irregular events, modelling non-linear and scale effects, prioritising and arbitrating between claims on cash flows, dealing with extreme values)
- Single-step solutions -> Iterative / goal-seeking solutions
- Spreadsheets on their own -> Spreadsheets + Visual Basic
- About
- Facilitator
- Outline
- Content
- Register
About the course
A financial model is a representation of the present and future states of a financial entity. A model is a dynamic creation and its outcomes are all action-related: Deciding, reporting, analysing, valuing - these are just some of the outcomes of models. Modelling provides valuable insights into the behaviour and performance of the entity being modelled. A model can be vital repository of the data, assumptions (and justifications for those assumptions) inter-relationships and dynamics of a financial entity.
Financial modelling requires accounting, finance and spreadsheet skills. Design, presentation and communication skills are also important.
This course aims to show how modelling is done and how models are used. It also shows the finance, accounting, spreadsheet and design skills that underlay good modelling practice.
About the facilitator
This course's facilitator is Alex Palfi. Before joining Tykoh, Alex had ten years of experience with Macquarie Group in quantitative finance and in presenting workshops internationally. He has presented courses in financial modelling, financial mathematics, financial programming, valuation, and option pricing and risk management in Europe, North and South America, Africa, Asia and in Australia & New Zealand.
Alex has worked in Investment banking, commercial banking and software development industries. Alex's university qualifications are in engineering. He obtained Bachelors and Masters degrees in Electrical Engineering from the University of Canterbury in New Zealand.
Audience
This course is aimed at those who wish to extend upon the principles and practice of financial modelling as covered in the core course presented on the preceding day.
Level
This is at an advanced level.
Duration
This day extends the concepts and practice of financial modelling as covered in day 1.
Prerequisites
You will need a level of knowledge equivalent to that covered in day 1.
Format
The course has a "hands-on" format. Each participant works with a laptop for the major part of the course on practical financial spreadsheet topics.
Following is an overview of the content.
| Advanced spreadsheet functions and features |
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| Spreadsheets provide advanced functions and features for the more
complex or sophisticated financial model. The following advanced functions and features are examined: |
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| Applications of advanced spreadsheet functions and features |
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| The advanced spreadsheet functions and features covered in the preceding section are
used to solve a range of compact but challenging problems. |
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| Advanced finance concepts |
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The following concepts may need to be considered in the design of some financial models. The concepts are explained and applied: |
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| Financial modelling applications and exercises |
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| This section shows how financial models are constructed and how they are
maintained and enhanced through their life-cycles. It gives examples of common
problems financial modellers face and techniques and solutions to address those challenges.
The following modelling applications and outcomes are amongst those covered:
Valuation, sensitivity and scenario analysis, risk-assessment and decision-support.
Practical exercises and topics include these:
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| Goal-seeking and the Solver |
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| Some financial modelling problems cannot be solved in a single step and require an
iterative solution. Spreadsheets provide three tools for problems like these:
Iteration, Goal-Seek and the Solver. These tools are described in this section, their advantages
and limitations are examined and they are applied to solve a range of finance problems.
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| Applications of Visual Basic |
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| Visual Basic allows routine spreadsheet tasks to be recorded and played back. This lessens the time needed to perform repetitive spreadsheet tasks. Visual Basic also allows new functions to be defined and used within spreadsheet formulae. These applications of Visual Basic are illustrated in this section. | |
Register
You can register your interest for any of our courses by selecting the "Register" menu item at the top of this page.
Register
You can register your interest for any of our courses by selecting the "Register" menu item at the top of this page.
Course Resources
See sample course exercises (XLS file).
See a snapshot of the course content (PDF file).
