As a consultant starting on a new project, I’d always prefer to start a new model from scratch – but that rarely happens! Normally we modellers have to take apart, check and validate a model that’s already been built by another modeller and when this happens, you can either start over and build your own model from the ground up or validate and verify the existing model to the extent that you’re comfortable to take responsibility for the calculations. Starting over to build your own model from scratch is inefficient and a waste of resources. Unless the model is in extremely poor shape, it’s usually far more efficient to use what you already have — but leave no cell untouched during the process of validation and verification.
Hear from financial modelling specialist, Danielle Stein Fairhurst as she outlines some techniques for how to check someone else’s financial model. In this video we cover:
- What to look for when “meeting” a model for the first time
- Using Inspect Document
- Audit tools
- A financial model audit (model review)
- Dealing with redundant assumptions
- Collaborative modelling