 | Oftentimes, risk-adjusted strategy and risk-adjusted planning are absent from the critical process of financial planning, budgeting, and forecasting. The truth is, unforeseen costs are detrimental to working capital and forecast accuracy. By embedding risk identification and valuation in this process, CFOs can keep their respective organizations functioning effectively, despite the occurrence of unpredicted events. Aberdeen surveyed nearly 200 companies to better understand their financial planning, budgeting, and forecasting strategies when accounting for risks. The results revealed that the majority of top-performing companies are meeting their budgets and forecasts by sensing and responding to change and using scenario modeling to build contingency plans. These plans leverage a strategic mix of people, processes, and tools to redirect the business so as to meet original budgets and forecasts. Request Free! |
