Cloud-based Financial Scenario Modeling for Crisis Prevention

Companies must be adaptable, flexible and creative in order to respond to changing environments. Crises bring uncertainties to business, especially in the long term, as there is no certainty of how the market will respond and whether sales will be able to continue as planned. To prevent these possible scenarios, it is ideal to have a tool that allows the modeling of financial scenarios on the cloud.

In these cases, it is essential that companies have powerful financial tools that allow them to deal with the circumstances, such as an EPM platform on the cloud.

A financial model is basically an abstract mathematical version that captures the financial reality of a company. The objective of this is to make a realistic representation of the company’s situation in order to project financial statements based on current and historical data. 

 

Why does cloud-based financial scenario modeling helps prevent crises? 

Financial scenario modeling helps prevent crises because it allows planning based on a specific set of assumptions and objectives. This gives way to a variety of possible scenarios and results that will help give agility and continuity to the business, and that will contribute to its growth. 

Having a cloud-based  financial scenario modeling tool will allow you to:

  • Prepare for a variety of scenarios

This tool will allow the company to prepare for different scenarios proactively and not depend on individual models that are limited. The idea is to analyze different scenarios with specific assumptions in order to have a wide range of actions in case of a crisis or a change in the market.

 

 

  • Define which strategy to implement

Your company will know if it should adopt a cost reduction defensive strategy such as making staff reductions, stop investing in certain assets, or leave some markets; or if it should perhaps adopt a more opportunist vision and implement a strategy of growth through acquisitions and mergers; make a radical transformation of the business or invest in new opportunities.

 

Oracle Enterprise Performance Management Cloud (EPM), the solution for scenario modeling

This cloud-based Oracle EPM has a Planning module where financial planning tools such as Scenario Modeling are included. This feature is designed to allow users to create long-range forecast models quickly and effectively. 

If you are interested in implementing financial scenario modeling on the cloud. Fusionworks can help you with this solution. Contact us!

 

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