Five questions on risk-adjusted forecasting and planning
Companies today face a dizzying array of risks, from regulatory pressures and competitor actions to talent shortages and cost volatility – and everything in between. These risks can have a significant impact on financial performance. Yet most financial forecasts and plans still revolve around single-point estimates and metrics that don’t objectively consider a company’s unique combination of key risks.
In this issue of Risk Angles, Nick Pope, director, Deloitte UK, discusses an approach to forecasting and planning that analyzes and tests multiple risk variables to help executives present forward-looking numbers with greater confidence — and manage key business risks more effectively. Then, Charles Alsdorf, director, Deloitte Financial Advisory Services LLP in the United States, shares his perspective on how CFOs can benefit by taking an investor’s view when preparing forecasts and plans.