The ability to create and understand financial models is one of the most valued skills in business and finance today. Microsoft Excel and macros programming has been the dominant vehicle used by finance and corporate professionals in the preparation and utilization of the full range of financial models and other applications.
However, as a result of the so called ‘95/5’ rule it can be concluded that 95% of Excel users probably only use a mere 5% of the program’s power. Most users know that they could be getting more out of Excel especially by using advanced techniques which would result in them being able to build more flexible, dynamic and professional models. Stress testing to deal with uncertainty and risk in Financial ModellingThis intensive 3 day workshop starts with basics and progresses in a logical step by step manner to the more complex and rewarding tools needed to build more robust models that save time, reduce unnecessary human errors and customize applications
Delegates will need some basic knowledge of Excel but not of professional modeling or programming. Some of the topics that will be discussed include:
- The 40 Excel functions that financial modelers use the most
- Best practice in modeling forecasted financial statements (Balance Sheet, Income Statement and Cash Flow Statement)
- The powerful combination of arrays, the offset function, the match function and drop down menus
- The danger of using IRR in isolation and possible solutions
- Modeling and automating ratio analysis in Excel
- Various Optimization solutions using Excel Solver (cash and inventory management, capacity planning and capital budgeting)
- Pivot Tables
- Record, write and edit powerful macros that will perform routine tasks in no time.
- Economic inputs to model and modelling fluctuations in external factors
- Use of stress testing to validate your underlying assumptions and risk calculations
- Advanced What-if analysis
- Importance of assumptions when assessing risk
- Scenarios and sensitivity analysis
- Learn different methods of what-if and scenario analysis in Excel using:
- Show multiple scenario outcomes simultaneously with one and two-dimensional Data Tables
- Using the Scenario Manager
- Manual scenario building
- Practical Exercise: At each step during the course, participants build and practice each formula, tool and technique. Record your own macro with buttons, build a pivot table, and create drop-down boxes.