A-Z: Best practices and resources in financial modelling

Financial modeling is used for representing any company or project in number. An organization can know whether starting a new project will be beneficial for the company or not. The importance of financial modeling has forced corporate organizations to hire expert financial analysts.

However, there is a need to create effective financial models that could predict the financial impact accurately. It is why organizations invest in financial analyst training so they could develop better financial models. Read on to know some of the best practices for financial modeling and the required resources. 

financial analyst certification courseBest practices for creating effective financial models

Before starting a new project or company, you should develop financial models to predict the financial impact. One can take better business decisions if they have accurate financial models. Some of the practices for creating effective financial models are as follows:

  • Decide the intention and goal of developing the financial model

What issue is going to be resolved by the financial model? Financial models can tell you about the performance of stocks/shares, financial position, and much more. You need to decide the financial factors that you want to know by developing a financial model.

  • Try to create a straightforward model

Financial analysts are expert individuals when it comes to understanding financial statements. However, the financial model will be used by company executives, shareholders, and business owners to make better decisions. A financial model should be straightforward so it could be understood by all.

You need to decide on minimum inputs and outputs that could successfully create the financial model. You need to use only those financial factors in your model that could help in achieving the output explained in the above pointer.

  • Plan the structure of your financial model

You need to decide how inputs and outputs will be laid across your financial model. Usually, excel sheets are used for creating a financial model. Make sure the structure of your financial model is easy to understand by everyone.

  • Think about data integrity

You need to make sure the financial data presented in your model is accurate, consistent, and complete. There should be no missing values in your financial model. Data validation and conditional formatting offered by Excel could help you in ensuring data integrity.

  • Test your financial model

To test the effectiveness of your financial models, you can provide dummy values in the input section. You can run stress tests by feeding hyperbolic scenarios that may occur at some point. Financial analyst training can help you in knowing more about how to test a financial model.

Resources for financial modeling

The most crucial resource for data modeling is financial data. Without abundant financial data, you cannot create an accurate financial model. Applications like Excel and PowerPoint are used by financial analysts to create financial models. Before developing a financial model, you may have to indulge in transactions analysis, equity research, etc. A financial modeling course can help in knowing the best resources for creating accurate financial models.   

Learn financial modeling with Imarticus

Imarticus Learning is now a common name among those looking for financial modeling courses. We circulate a Financial Analysis Prodegree (FAP) for those looking to become successful financial analysts. The financial analyst certification provided at the end of the course will also be endorsed by KPMG. You can get a lucrative job in the finance sector with an industry-recognized financial analyst certification.

The FAP course will allow you to work on numerous real-world projects related to financial modeling. You will also learn how to develop accurate models with Excel and PowerPoint. Start your financial analysis course now to learn financial modeling!

The insane demand for cybersecurity certification in 2022

What is Cybersecurity? 

In this age of increased usage of the internet, people have forgotten to draw a line or limit themselves. Everything is on the internet right from one’s banking details to confidential data. Technology has grown by leaps and bounds and some people take advantage of the loopholes and vulnerabilities in the system. They are known as hackers. Some hackers can steal data and other important details like pictures, documents, and personal details from phones and computer systems.

To tackle these mischievous hackers, Cybersecurity has to step in. Cybersecurity is the term used for the application of technology to increase security and to protect systems, devices, and networks from hackers. Cybersecurity reduces the risk of data theft and protects systems from being illegally exploited by malicious hackers. 

A Cybersecurity expert has the responsibility of securing his organization’s network and preventing a security breach. Organizations have private and confidential data on their networks and there is often a chance that a black hat hacker can penetrate through a weak link in the network.

A Cybersecurity expert is given authority by the organization to ethically hack into the network to find and fix any discrepancies. There are many Cybersecurity certifications online and individuals with an interest in the field can opt for a career in this field. 

The Need for Cybersecurity Workers 

Given the boom in technology, everything is moving online. Be it important data or information, everything is stored on the internet. With spies and hackers all over the internet, it is necessary to safeguard one’s data and network.

This is where Cybersecurity workers step in. Cybersecurity is in huge demand in government offices, defense, IT companies, etc., since all these organizations have sensitive data that is stored on their network. If the data is stolen by unauthorized people, it can be a threat to a large number of people. 

There is a huge demand for the role of Cybersecurity experts and this is a great career path for anyone who is proficient in IT and has a knack for different computer languages. One can become a certified ethical hacker. With newer technology and tools, hackers have found various ways to hack into systems and networks. Hence, there is a need for Cybersecurity experts in many organizations. 

According to reports, the need for Cybersecurity experts is 3 folds higher than any other job profile. It is a fast-growing role and there is a dearth of good experts in this field. The demand is higher than the number of qualified Cyber experts. Cybersecurity jobs are 13% of the entire IT industry and that is a big chunk compared to the various roles available in the field. Reputed institutions are offering certified Ethical hacker certification. The top job profiles in Cybersecurity are:

  • Risk Management- Risk management is a crucial position in the IT industry since it requires the expert to identify, analyze and evaluate the Cybersecurity threats to the organization.

  • Application development security- There is a huge demand for this Cybersecurity skill in the US and the demand is said to increase heavily by 2025. It is fast-growing and there are chances of a 164% increase in the vacancies for this role.

  • Cloud Security- With many operating systems relying on cloud computing systems for the storage of their data, there is a huge demand for Cybersecurity experts with Cloud Security skills. Cloud Security involves protecting the data and information stored online via Cloud computing from theft and leak. 

The Future of Cybersecurity Experts in the Industry 

With a surge in digitalization, criminals have come up with innovative ways to get their hands on sensitive and confidential information. Many organizations are facing a threat to their important data.

To ensure the safety of important data, there is going to be a heavy demand for Cybersecurity experts in various organizations. In the year 2022, close to 2 million job openings are available for qualified Cybersecurity professionals. 

Individuals who have a keen interest in this field can take up a PG Program in Cybersecurity from Imarticus Learning

With the increase in technology, hackers will find newer ways to steal data, and the only way to control this scenario would be to have more Cybersecurity experts. 

The factors driving India’s stock market boom

It seems like everywhere you look, there is an article about the growing economy in India. The GDP has grown by 6% year on year, and the stock market continues to rise. The Indian economy still faces many challenges, including corruption, poverty, lack of infrastructure, high inflation rates, and low literacy rates.

While these problems are longstanding ones for India, they should consider them before investing money into what looks like an attractive market right now. So while it might seem like a good idea to put your money into Indian stocks right now because everyone else is doing so too (momentum investing). It may be better to wait until more data on the Indian economy is available, and we know if their GDP growth rate will continue at 6%.

1.      Government Policies: 

  • While some policies may be controversial, the Indian government is doing a lot to attract foreign investment.
  • The Prime Minister’s office has held meetings with CEOs and business leaders to get their perspectives on what India needs to improve its economy.
  • He needs to follow through and make the changes necessary for foreign investors to feel comfortable putting their money into India.

2. Foreign Investment:

Recently, there has been great news about foreign companies investing in India and setting up production facilities here: 

  • Walmart is planning to spend nearly $1 billion in India shortly. 
  • Toyota wants to increase its production plant numbers from two to four over the next few years.
  • Dell is looking for more places to open up shop, both nationally and regionally.  
  • Google wants to double the size of its workforce in India over the next few years.

3. Indian Stock market:

The Indian stock market has been on a tear recently, increasing by over 10% in the past month and making many investors very happy:

  • When news about India’s economy is released, the stock market often jumps up due to increased trading volume. 
  • It could be because people buy stocks based on rumors or speculation rather than actual data about the economy.

4. Exchange Rates:

  • The Indian rupee has been rising relative to the U.S. dollar lately.
  • It means that foreign investors can buy more Indian stocks with their dollars now than they could have a few months ago.  
  • However, this rupee appreciation might be short-lived as inflation in India is still high and will likely remain elevated for the next few years.

Explore and Learn with Imarticus Learning

Learn about complicated securities and derivatives, their trade-lifecycles, and the services that make up an investment banking career. Complex securities and derivative markets and their trading lifecycles and functionalities get covered in the investment banking course.

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  • This Investment banking course for students is with placement assurance aid the students to learn job-relevant skills.

  • Impress employers & showcase skills with the certification in capital market endorsed by India’s most prestigious academic collaborations.

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