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| 1 minute read

Forecast Accuracy? That Was Easy... Not

While providing guidance to Wall Street has always been the domain and dance of the CFO, this year has been quite the challenge. The market volatility alone has been creating forecast accuracy havoc. Some companies have been implementing sophisticated AI-aided tools to improve forecast accuracy with unclear results. What makes things more interesting is the tone on earnings for '22 was dampened earlier by the Russian invasion, supply chain disruptions, and the COVID-19 Pandemic / Endemic barrage that remains prevalent. Most CFOs continue to be conservative in forecasting, albeit accuracy is challenging given the systemic shocks to customers, supply chains, and labor. We continue to focus on the macro-environmental impacts on forecast models while digging into the micro impacts. The trusted excel model is still quite handy...  More to follow.

© Copyright 2022. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.

More than two years after the early waves of the pandemic forced executives to toss out their forecasts, finance chiefs are getting attuned to a barrage of challenges they didn’t see coming: the war in Ukraine, Western sanctions against Russia, volatile stock and bond markets, new lockdowns in China, continued supply-chain disruptions and the rapid rise in inflation.

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finance, office of the cfo, perspective

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