Course Objective

By the end of the workshop, participants will be able to:

•  Understand the current methods used to optimize the results of the budgeting process
• Create a budget for maximum performance
• Gain confidence in using advanced models to improve the accuracy of your budget
• Create & evaluate reports that give the needed information
• Understand Risk Assessment & management in the process & what to do about it.

Course Outline

INTRODUCTION

• Explaining & measuring market demand
• Uses & characteristics of budgets
• Tradeoffs in the budgeting process

PRIMARY METHODS USED

• Qualitative methods explained & demonstrated
• Qualitative methods explained & demonstrated
• Regression analysis linear vs multiple

TOOLS & MODELS

• Spreadsheets as tools
• What are the current models used & why?
• Examples of Internet software available
• CASE STUDY

RISK ANALYSIS IN BUDGETING

• Scenarios analysis uses & limitations
• Sensitivity analysis uses & limitations
• How & when to apply the Subjective approach
• CASE STUDY

ASSUMPTIONS THAT CREATE PROBLEMS

• Inflation rates & the Fisher effect
• Currency exchange rates & how to compensate
• Oil price fluctuations & how to deal with them
• CASE STUDY

INTERNAL ORGANIZATION REPORTS

• Variance reports & what is important
• Comparing forecasts to actual results
• Timeliness of the evaluation
• CASE STUDY

BUDGETING COMPARISON

• Budget & profit plan comparison
• Perpetual budgeting vs.
• Flexible budgeting
• CASE STUDY

INTEGRATING THE SYSTEM

• The annual budgeting process
• The strategic planning process
• Financial reporting & executive compensation
• CASE STUDY

SIMULATION METHODS

• What is the "Monte Carlo" simulation model?
• Limitations & benefits of its use
• Demonstration of the computer based technique

• CASE STUDY

MANAGEMENT OF FINANCIAL RISKS

• The Miller-Modigliani Theorem
• Systematic vs. Unsystematic risk
• Pareto's Law review & applied

Who Can Benefit ?

• Financial Officers and Treasurers
• Who want to improve the accuracy of their budget
• Who want most advanced budgeting tools

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