![\"\"](\"http:\/\/flevy.com\/blog\/wp-content\/uploads\/2023\/01\/DALL\u00b7E-2023-01-06-12.56.45-4K-stock-photo-of-a-business-person-holding-a-chart-that-makes-no-sense.jpg\")
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The impact of unforeseen crises\u2014such as economic depressions, natural disasters, and black swan events (i.e. the recent COVID-19 pandemic\u2014is immense.\u00a0 Crises can paralyze organizations and economies alike. \u00a0These times are certainly anything but business as usual for almost all organizations.\u00a0 There are safety concerns everywhere.\u00a0 People have restricted movement, business activities slow down, and cash flow squeezes.<\/p>\n
During these uncertain times, customers\u2019 requirements shift dramatically and this demands different ways of working from the organizations. For instance:<\/p>\n
Most organizations tend to get cash strapped during such uncertain times while many need to resort to drastic Cost Cutting measures.\u00a0 Such circumstances warrant the following elements from the businesses to come out of the crisis stronger than before:<\/p>\n
Financial Planners typically prepare financial forecasts based on historical trends, past performance, and market trends.\u00a0 During uncertain times, management should focus on Cost Management<\/a> and employing effective Forecasting methods.<\/p>\n A robust Forecasting approach that is able to manage stakeholders\u2019 expectations necessitates 3 key steps:<\/p>\n The approach has 3 corresponding questions for each step:<\/p>\n Let\u2019s dive deeper into the details of the first 2 steps of this Forecasting approach.<\/p>\n The initial step of the approach entails using a flexible forecasting tool to create estimates by taking into account both positive (upside) and disadvantaged (downside) scenarios.\u00a0 The forecasting suite should be able to provide functionalities for:<\/p>\n The next step necessitates putting together compelling assumptions.\u00a0 Planners need to develop, communicate, and test dynamic and up-to-the-minute forecast assumptions and drivers.\u00a0 They should:<\/p>\n Interested in learning more about the steps of the approach to Financial Forecasting?\u00a0 You\u00a0can download\u00a0an editable PowerPoint presentation on\u00a0Forecasting Uncertainty here\u00a0<\/a>on the\u00a0Flevy documents marketplace<\/a>.<\/p>\n You can download in-depth presentations on this and hundreds of similar business frameworks from the\u00a0FlevyPro Library<\/a>.\u00a0\u00a0FlevyPro<\/a>\u00a0is trusted and utilized by 1000s of management consultants and corporate executives.<\/p>\n For even more best practices available on Flevy, have a look at our top 100 lists:<\/p>\n The impact of unforeseen crises\u2014such as economic depressions, natural disasters, and black swan events (i.e. the recent COVID-19 pandemic\u2014is immense.\u00a0 Crises can paralyze organizations and economies alike. \u00a0These times are certainly anything but business as usual for almost all organizations.\u00a0 There are safety concerns everywhere.\u00a0 People have restricted movement, business activities slow down, and cash… Forecasting Uncertainty<\/span><\/a><\/p>\n","protected":false},"author":110,"featured_media":12402,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"neve_meta_sidebar":"","neve_meta_container":"","neve_meta_enable_content_width":"","neve_meta_content_width":0,"neve_meta_title_alignment":"","neve_meta_author_avatar":"","neve_post_elements_order":"","neve_meta_disable_header":"","neve_meta_disable_footer":"","neve_meta_disable_title":"","footnotes":""},"categories":[83,408],"tags":[4,1985,15,3081,3083,1136,3082,2902,1490,3022,60,2223],"class_list":["post-12397","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-finance","category-management-leadership","tag-business-model","tag-cash-flow","tag-cost-management","tag-crisis","tag-customer-experiences","tag-decision-making","tag-financial-planning","tag-forecasting","tag-investments","tag-scenario-analysis","tag-scenario-planning","tag-uncertainty"],"_links":{"self":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12397","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/users\/110"}],"replies":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/comments?post=12397"}],"version-history":[{"count":5,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12397\/revisions"}],"predecessor-version":[{"id":12405,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/posts\/12397\/revisions\/12405"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media\/12402"}],"wp:attachment":[{"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/media?parent=12397"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/categories?post=12397"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/flevy.com\/blog\/wp-json\/wp\/v2\/tags?post=12397"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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<\/p>\n\n
Step 1. Select a flexible forecasting tool suite with the right level of scope and detail.<\/strong><\/h2>\n
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Step 2. Share, corroborate, and evaluate your assumptions.\u00a0 <\/strong><\/h2>\n
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Do You Find Value in This Framework?<\/strong><\/h2>\n
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