It is a well known fact that most organisations' annual budgeting process starts with the end number and works backwards to justify the result. However the volatility seen across economies, industries and markets in recent years has highlighted the need for more rigorous scenario modelling as we all try to forecast what the world will look like next year, in five years, or in 25 years based on a series of assumptions.
The Rebase approach starts by identifying the key levers and drivers of your business (e.g. economic growth, market returns, client acquisition, asset allocation) and considers the dynamics of how they interact. By applying statistical rigor to historical trends and industry benchmarks a more accurate forecasting model can be created that will facilitate better decision making and resource planning. Assumptions can also be recalibrated and stress tested under extreme scenarios to provide better visibility for contingency planning, risk management or risk avoidance.
