Conditional Revenue / Risk Model

This model builds a revenue or cost projection based on potential future cash flows (opportunities or risks). In the model, we build a number of potential cash flows (or costs). For each item, there is a distribution of potential outcomes; and a probability that the event will or will not occur.

Calculating the model, we generate a distribution of potential future revenue (or risk).

In addition to the main projections, we can create additional projections for alternative scenarios. In a risk model, for example, this might reflect the potential risk reduction if we take specific mitigation steps.

In a revenue model, alternative scenarios might reflect changes to opportunities in response to external market factors; or they might reflect different opportunities based on specific marketing and sales efforts.

Guide to this Application

There's a walk-through guide to help you understand the application and how it works available here:

Conditional Revenue / Risk Walkthrough

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