Financial Model Assurance

Almost all businesses use spreadsheets, dashboards, and other end-user computing tools to calculate the impact of a future event or decision. Some use them well, harnessing the functionality and reaping the benefits. Others rely too heavily on these tools, exposing themselves to significant risk.

While Microsoft Excel is the tool everyone thinks of when you mention modelling, we increasingly see similar issues with other spreadsheets, visualisation tools, low code platforms and scripting languages, which can all be open to the same risks.

At best, these risks can result in operational and efficiency issues but, in the worst case, data loss, errors in financial reporting and even fraud. We can validate the data and logic used in your models, help you document and understand the calculations and assumptions within the model and help you build confidence in them.

In addition to our specialist skills in Structured Finance and Credit modelling, we have vast experience in building and assessing the models our clients use as part of their management, financial, or other stakeholder or regulatory reporting requirements.

Our Financial model assurance can cover any industry, function, or process but we often look at the following types of model:

• Cashflow forecasts, impairments, or valuations
• Sustainability reporting
• Corporate governance reporting for unexpected changes, events, or disruption 

 Our modelling assurance work can include the following types of analysis:

• Mapping model calculations
• Comparing model logic to technical documentation
• Outlining potential logic errors, inconsistencies, unexpected values, and gaps in user guidance
• Recommendations to improve modelling processes and governance
• Sensitivity analysis by stressing key variables and inputs
• Building challenger models and recalculations.