
See below image for the Financial strategy model simulation diagram. What is Financial Modeling Simulation? What is Financial Modeling Financial modeling is performed in Excel to forecast a company’s financial performance. Overview of what is financial modeling, how & why to build a model. as a form of risk analysis.
Classic simulation techniques that take a top-down modeling approach are not suitable because the dynamics of financial markets are just too complicated to be represented by structural models.
Monte Carlo simulation is a standard technique in finance, but for strategic planning, Monte-Carlo implemented with self-optimizing variables are essential in producing realistic results. Financial models are crucial to the business but building them in Excel can be both complicated…