If we go with the words “Financial Modelling Training” the topic itself lacks the interest
to read.
The Financial Modelling Training is
nothing but training to create a
Financial Model which should be Input Efficient, User-Friendly and Output
Objective.
Now,
what is Financial Model?
A Financial Model is like structure that takes some Financial
Information, performs the calculations and other steps provided in the
structure and gives output along with recommendations based on the information
so provided. Few of the examples of it can be a Capital Budgeting Model, Discounting
Cash Flow Model etcetera.
Now how to teach someone to make a well
designed Financial Model is a procedural task. The first thing which is most
important is the knowledge of Software in which the Model is to be drafted that
is in almost all cases areMicrosoft Excel. This is regarded as the base of the
Model.
Before we move on to the guideline part
of the training, we must understand what
the word “A well designed Financial Model” represents?
A Financial Model should have the
following Characteristics to be regarded as “Well designed”:-
·
It
should be supported with the properly documented underlying assumptions. A poor
documented assumption’s set can make the best to the worst model.
·
Each
and every function used in the model should be clearly defined so as eliminate
the ambiguity.
·
It
should be supplied along with a user-friendly instructions book if the model
itself is not self-explanatory.
·
The
coding used in the model should be easy to eye and understand.
·
The
scalability feature of the model cannot be ignored as it represents flexibility
in using the model.
·
The
model should flow in logical directions like left to right and top to bottom.
·
It
should be robust, reliable and relevant for the information required.
·
Proper
referencing and codes linking should be used to make it flexible enough to
modulate.
The guideline part (Instructions) starts
from here-
·
Conceptual Design:-Before jump to thecoding of a model, a conceptual design should
be prepared based the availability of input and requirement of the output or
information.
·
Assumptions Base: - The designer shall identify the
assumptions which shall define the range of functioning of the model.
·
Selection of Inputs: - The input variables should be selected
on the basis of thequality of information
required and complexity of format/code.
·
Initial Coding & Compilation: - In this phase,
the Conceptual Design is shaped into physical codes,
and the model shall be run to find out the errors in the coding.
·
Testing: - The model shall be tested for the
accuracyof information which can be done through using the test data of any
company or any rough information.
·
Alternative Coding: - After successful testing of the model,
the designer, for the simplicity of the end user, shall be taught to find out alternative
codes which require lesser input and provide the same results.
Presently this training is being
provided by several institutions globally. It’s being a complex, and theintellectual
process requires at least 2 to 3 weeks
training period.
If you want to learn financial modelling courses then
you may contact Financewalk.com
0 comments:
Post a Comment