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Financial modelling needs standards, relevance and funding

 

Financial Modelling needs to follow the Software Industry.

Financial Analysts of the world needs to follow the lead of the software industry and start developing financial models with the end user in mind. Clear, user friendly models which are fit for purpose and which are easily understood. However Financial analysts, financial consultants, financial planners need active well funded support and time to complete the job.
Forecasting & Budgeting Survey 

Crisis supported by Models written by Juniors in Excel

There is no regulatory standard for financial modelling which is amazing given the financial crisis. We the taxpayer are going to keep putting money into this black hole then let’s plan it properly. My suspicion and the author would gladly be proven wrong is that Treasuries around the world (both Governments and Corporate) are squandering these vast sums based on models developed by junior members of staff in Excel. Financial modelling is an unrewarding job generally which needs to be given more respect and resources by CEO’s, Chief Information officers and Head of Finance, information security and risk. It needs support. Financial modelling fulfills the role of budgeting and forecasting software as well.
Whitepaper-True Cost of Excel.

Why no boom for Financial Modelling?

In comparison to the fees paid to lawyers, auditors it’s amazing that financial modelling and business modelling is not in the midst of an unprecedented boom.  Why is liquidating such a cherished position in and so well paid in Auditing practices.
Financial Modelling software Trial

Some say decision makers are not interested in financial modelling or its complexities nor the importance of doing it better. We believe they are not prepared to fund or resource it.
So this recovery which is going to cost more than World War II compareatively ought to be financed on clear, auditable standards. Based on clear, agreed, auditable standards, certified internationally to accredited levels.

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