X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
“Risk-adjusted forecasting” is a new buzzword in financial planning and analysis (FP&A). What, exactly, does it mean? Risk-adjusted forecasting and planning involves shocking the financial forecasts with major risk drivers in an integrated and flexible manner,” says H-K Bryn, strategic risk partner at Deloitte in the U.K. “The approach allows a more robust and transparent evaluation of volatility and risk within current plans, helping to build a better understanding of the potential upside—and downside—inherent in the future of the business.”

Mark Pellerin, a principal at Oliver Wyman, which conducts an annual risk survey with the Association for Financial Professionals (AFP), puts it another way: “When I think of risk, I think about having a clear understanding and definition of the relationships between the variation in expected outcome and risk factors,” he says. “Risk-adjusted forecasting is coming up with alternative forecasts that have clearly defined relationships with the variables and risks.” It’s not about having a crystal ball, but about achieving a better and more precise definition of the drivers of, and risks to, the organization’s financial performance.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.