This three-day comprehensive and highly interactive Executive Program “Certified Financial Modeling (CFM)™ Master Class” is designed to equip the participants with a practical understanding of effective financial modeling. This course covers 20 major subject areas and utilizes a variety of training techniques. Through real-life case studies, the emphasis will be on practical and pragmatic approaches.
Designed for finance professionals, this program will give you an indepth knowledge on how to build and design sophisticated financial models. You will learn to develop robust capital investment model, handle risks in uncertain scenarios and build rigorous models that evaluate major financial decisions for your organization. You will also learn how to forecast key financial statements, develop financial analysis and use financial models as a center-piece of the strategic planning for your organization. Led by author of highly acclaimed 550-page workbook “Financial Modelling, participants will also gain the latest cutting edge insights on risks, capital structures and costs of capital.
At the end of the program, you will receive the designation of Certified Financial Modeler™ (CFM) that you can use on your resume and business card. Internationally recognized and globally demanded, CFM is recognized in over 145 countries with over 200,000 members.
SPREADSHEET DESIGN PRINCIPLES
Session 1: Review of Spreadsheet Building Concepts
- Importance of good spreadsheet building habits
- Types of spreadsheet errors
- Practices to detect and prevent spreadsheet errors
- Seven good spreadsheet building habits
Session 2: Exploring Functions in a Spreadsheet Model
- General Format and use
- Selected financial functions
- Selected statistical functions
- VLOOKUP and other logical functions
EXERCISE: Participants will be provided with a template that uses a number of Excel functions
Session 3: Sensitivity Analysis
- What is sensitivity analysis?
- How is it performed?
- “Add-in” products available
EXERCISE: Participants will perform a sensitivity analysis on a spreadsheet.
Session 4: Effective Design of a Financial Model
- Basic Principles
- Elements of financial models
- Inputs and outputs
- Financial statements
- Schedules Suggested framework
- Key modeling tips
Session 5: Principles of Risk and Return
- Capital structures
- Weighted Average Cost of Capital (WACC)
Session 6: Forecasting
- Approaches to forecasting
- Analyzing historical data to identify components
- Long-term trends
- Cyclical variations
- Seasonal variations
- Random variations
- Introduction to modeling time series analysis
EXERCISE: Participants will use historical data for a company to prepare a revenue forecast.
Session 7: Forecasting Financial Statements
- The fundamentals of using sound judgment
- Forecasting the income statement
- Forecasting the balance sheet
- Forecasting the cash flow statement
- Evaluation of the reliability of forecasts
EXERCISE: Participants will be provided with historical company data from which they will model the forecasting of financial statements.
Session 8: Cost-Volume-Profit (CVP) Analysis
- Determining fixed and variable costs
- Calculating break-even point
- Constructing CVP graph
EXERCISE: Using a pre-built model, participants will calculate the break-even point for sales, and then construct a CVP graph.
THE PRINCIPLES OF CORPORATE FINANCE
Session 9: Project Appraisal and Decision Making
- The principal of Discounted Cash Flow techniques
- Alternative methods of project evaluation
- Why use cash flows
- Identification of relevant cash flows (revenues and costs)
- Calculating project returns
- Understanding the nature of risk and its effect
- Building risk into a project appraisal
EXERCISE: Participants will be provided with case studies relating to a number of Middle East companies where they will be able to model the cash flows, calculate the appropriate discounting factor, and calculate the expected return.
Session 10: Optimization Techniques in Financial Modeling
- Elements of optimization techniques
- Understanding and using linear programming
- Using the Solver facility in Excel to solve linear programming problems
EXERCISE: Participants will use linear programming and the Solver facility in Excel to solve a problem of resource allocation between competing projects with different rates of return and different risk characteristics.
MONTE CARLO SIMULATION, MACROS, AND USER-DEFINED FUNCTIONS
Session 11: Introduction to Spreadsheet Macros
- Understanding the nature of macros
- Using the Excel macro recorder to create macros
- Editing and enhancing recorded macros
- Identifying and correcting errors in macros
- Attaching macros to command buttons
EXERCISE: Participants will create a simple macro and attach the macro to a command butt on. They will then examine prewritten macro that is not operating as intended. They will use the facilities of Excel to debug and attempt to correct the error(s) as appropriate.
Session 12: Monte Carlo Simulation
- The nature and uses of simulation techniques
- The way Monte Carlo Simulation works
- Reviewing statistical measures and how to calculate them
- Mean, variance, standard deviation
- Probability distributions and the normal distribution
- Running a simulation and interpreting results
- Exploration of a basic program to perform Monte Carlo Simulation
Session 13: Financial Model Auditing / Review
- Why audit?
- Excel’s auditing tools
- Automated testing tools: role, purpose and limitations
- Model documentation
Session 14: Automated Model Generation Tools
- Overview: purpose, advantages, disadvantages
*Only those who successfully complete the exam will receive the Certified Financial Modeler™ designation