Introduction

The following is a general introduction to financial modelling. It covers:

• The meaning of financial modelling.
• The purpose, use and benefits of models and modelling.
• Simple examples, and some possible enhancements to these.
• The importance of balancing simplicity and complexity.
• Introduction to sensitivity analysis, with examples and extensions.
• An introduction to using models to evaluate financial decisions.
• The importance of identifying the right decision possibilities, and the challenges and processes to do so.
• Types of models and the links between modelling and data analysis.
• The skills required to be a well-rounded and professional financial modeller, and the link to the CertFM Program