Balancing the risk-return equation
Financial forecasts and plans carry a lot of weight in the business world. But how much confidence do companies and CFOs really have in their forward-looking numbers – especially in a business environment that is increasingly complex, uncertain and risky?
Companies are looking to move beyond traditional approaches to forecasting by incorporating multivariable risk modeling and analysis. The result? An improved approach – which we call risk-adjusted forecasting and planning – that shows a broad range of likely outcomes and their associated probabilities.