Do you incorporate external value drivers in your financial analysis? 🤔
Here's what I learned about using external value drivers in financial scenario analysis from the #FPAC. ⬇️
Most finance professionals encountered the PESTEL framework at one point during business school where it is introduced as a strategic tool used to identify and analyze the external macro-environmental factors that can impact an organization.
As such, the framework is often used for strategic analysis, but it is also highly applicable when it comes to defining the external value drivers that can be integrated into financial models.
By systematically analyzing the PESTEL factors – political, economic, social, technological, environmental, and legal – finance professionals can construct financial scenario building on forecasted trends in key external value drivers.
Such scenario analyses can help inform strategic decisions and enable proactive management of potential opportunities and threats in the external business environment.
Learn more about becoming a certified financial planning and analysis professional at Association for Financial Professionals.
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Bryan Lapidus, FPAC, #Finance #FinanceBusinessPartner #CFO #FPandA #DataVisualization
Auditor at TSD Lal & Co (Chartered Accountants)
2moCongrats bro🙏