When in doubt, develop the situation
‘Developing the situation’ is the common-sense approach to dealing with complexity. Both as a method and a mind-set, it uses time and our minds to actively build context …
S@R
S@R develops models for support of decision making under uncertainty.
Taking advantage of recognized financial and economic theory, we customize simulation models to fit specific industries, situations and needs.
Top Ten Concerns of CFO’s – May 2009
A poll of more than 1200 senior finance executives by CFO Europe together with Tilburg and Duke University ranks the ten top external and internal concerns. High in all regions we find as external concerns; consumer demand, interest rates, currency volatility and competition.
The fallacies of Scenario analysis
Scenario analysis is often used in company valuation – with high, low and most likely scenarios to estimate the value range and expected value – but do they give correct answers?
Valuation as a strategic tool
Valuation is something usually done only when selling or buying a company. However it is a versatile tool in assessing issues as risk and strategies both in operations and finance …
The Probability of Bankruptcy
A good metric should have a low probability of rejecting a true hypothesis of bankruptcy (false positive) and a high probability of rejecting a false hypothesis of bankruptcy (false negative).
Predicting Bankruptcy
The Z-score formula for predicting bankruptcy was developed by E. Altman. The score is not intended to predict when a firm will file for bankruptcy, It is a measure of how closely a firm resembles other firms that have filed for bankruptcy.