Financial Modelling SOP

This detailed SOP provides finance professionals with a structured framework for managing financial modelling processes.
It includes:
- Step-by-Step Process Flow: Outlines essential subprocesses such as Financial Overview, Scenario Analysis, and Final Review and Approval, with clear actions, decision points, and error-handling procedures to ensure accurate and reliable financial projections.
- Risk Management: Identifies key risks such as inaccurate financial data, invalid assumptions, and errors in financial projections, with mitigation strategies to ensure the integrity and credibility of the financial model.
- Compliance and Regulatory Requirements: Ensures adherence to financial regulations and standards such as GDPR and FCA guidelines, maintaining compliance throughout the financial modelling process to safeguard data and ensure transparency.
- Key Performance Indicators (KPIs) and Controls: Defines metrics like data accuracy, assumption validity, and stakeholder engagement, with controls such as data verification processes, regular review of assumptions, and peer reviews to monitor and improve the financial modelling process.
- RACI Framework: Clearly defines roles and responsibilities for each task in the financial modelling process, ensuring that project managers, financial analysts, and stakeholders are accountable and engaged at each stage.
- Systems Requirements: Details the necessary systems, including a Financial Management System, Scenario Analysis Tools, Documentation Management Systems, and Data Security Frameworks to support accurate financial modelling and ensure data security.
- Appendices: Includes practical resources such as financial data collection checklists, scenario analysis presentation templates, and tips for SOP users to ensure consistency and accuracy in financial modelling processes.