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