What is the value of predictive modeling by chief financial officers?
The capability to test financial data under a variety of anticipated scenarios empowers decision-makers to make choices by first visualizing what is likely to happen given alternative events, e.g. increasing interest rates, rising fuel costs, volatile exchange rates and natural disasters. Clearly, this facility has valuable implications spanning pricing, expansion plans, financing, human resources and competitive advantage. Predictive modeling enhances the speed and quality of human judgment to determine those actions that will drive optimal outcomes for all stakeholders. By interrogating specific data, a forecast of future business conditions can easily be illustrated.
