The Impact of Competitive Position on Prices and Costs
Machine Learning and AI for Risk Management
After completing this reading, you should be able to: Explain the distinctions between the two broad categories of machine learning and describe the techniques used within each category. Analyze and discuss the application of AI and machine learning techniques in…
The Impact of Competitive Position on Prices and Costs
Forecasting Costs
Modeling Non-operating Costs and Other Items
Financing Expenses Financing costs comprise interest expense and interest income, which are typically netted. Interest income is less significant to non-financial companies but a key revenue component for financial institutions such as banks and insurance companies. Interest income depends on…
Behavioral Finance and Analyst Forecasts
Financial statement models are not immune to behavioral biases. Analysts must be aware of the impact of behavioral biases and solutions to improve investment decisions and forecasts. The five key behavioral biases are overconfidence, conservatism, confirmation bias, the illusion of…
Balance Sheet Modeling
Income Statement Modeling: Revenue
Analysts use three approaches to project future revenue. Top-down approach. Bottom-up approach. Hybrid approach. Top-down Approach The top-down approach begins at the level of the overall economy. Forecasts are then narrowed to such levels as sector, industry, and market for…
Operational and Integrated Risk Management
Introduction to Operational Risk and Resilience Risk Governance Risk Identification Risk Measurement and Assessment Risk Mitigation Risk Reporting Integrated Risk Management Cyber-resilience: Range of Practices Case Study: Cyberthreats and Information Security Risks Sound Management of Risks related to Money Laundering…
