We advise on the building of new financial models, in order to create model that are fit-for-purposes, especially ones which align with the intuition or thought-processes of the decision-makers, meet their decision support needs, and are as flexible, transparent and efficient as possible. Generally, a short planning engagement is sufficient to define the key decision-support requirements of a modelling process, and design the overall model architecture in the appropriate way. This support ensures that clients’ models are based on the appropriate data structures, are transparent, as simple as they can be, and meet their decision-support needs (such as the ability to conduct sensitivity, risk/simulation or optimisation analysis), to reflect commercial levers, value drivers and so on. We also consider the structural options available, advise on the most appropriate approach, and provide some key advice and technical input relating to the appropriate implementation issues (e.g. data structures, appropriate layout, selection of which advanced Excel or VBA functionality should be used).
Read also about model auditing and improvement.