Characteristics of a good financial model

The following are the 12 earmarks of a White Box Financial Model.

Ease of use

1. User-friendly across important user groups - Including analysts, in-house modelling capability, and senior management.

2. Readily reviewable and auditable - Helps manage risk, cost, and schedule. We have experience delivering formal model audits and maintain relationships with respected audit firms.

3. Quick - Short calculation and processing time.

4. Change tracking - Allows quick and meaningful explanation of changes in results and reduces risk.

Robust

1. Checks and alerts - Extensive automated tests reduce risk and promote housekeeping.

2. Input tracking - Enjoy continuity when key personnel are unavailable.

3. Flexible - A refined approach to quickly and reliably accommodate change, while managing complexity, cost and timing.

4. Scenario and sensitivity analysis - Robust, repeatable and with clear outputs.

Meet clients' needs

1. Business driver-based - Built up from pertinent business drivers.

2. Useful outputs - Including a bespoke dashboard, annual summaries, detailed breakdowns, and often more.

3. Professional presentation - Inspire confidence in investors, lenders and colleagues.

4. Suitable for the audience – Allowing master versions to be quickly sanitised for submission to different stakeholders.