Financial model: Difference between revisions
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* [[Financial maths]] | * [[Financial maths]] | ||
* [[Financial modelling]] | * [[Financial modelling]] | ||
* [[Input]] | |||
* [[Model]] | * [[Model]] | ||
* [[Risk management]] | * [[Risk management]] | ||
Revision as of 13:54, 11 August 2021
Spreadsheets and models.
A simplified representation of a financial situation, using selected assumptions.
Financial models are widely used in practice for valuation, and to support financial decisions and risk management.
Models are also an important tool in finance coaching and financial education.
In simple terms, a model:
- Presents a financial calculation (or calculations)
- In a way that enables the user to understand it and to challenge it, especially about its assumptions.
