Business and Operational Analysis Services
CapActix considers operational analysis important in determining the assets contributing to the growth of the organization. Strategic planning for business operations is necessary for achieving operational efficiency and dealing with the other essential organizational objectives.
CapActix considers operational analysis as one of the most helpful self-assessment of any business.
The operational analysis starts with a collection of disseminated information for performing various analyses of the data. For an instance, comparing the actual performance with the performance goals in regards to specific factors or assets to determine gaps and ascertain corrective adjustments.
Operational analysis closely examines the investments in assets and other resources to determine the scope of any adjustments. This also increases efficiency in a cost-effective manner to achieve the company’s strategic goals.
At CapActix, our expert team of Business Strategy and planning helps in conducting the following Operational analysis:
The scenario analysis examines the future probable events by considering its feasible outcomes. This process is very useful in estimating fluctuations in the business valuation. Scenario analysis remains most essential in favorable and unfavorable events. This process improves many aspects of financial modeling.
Our steps for Scenario Analysis:
- List out the assumptions to create scenarios
- Determine the number of desired scenarios
- Gathering required details for all the identified scenarios
- Ensuring for identical layouts for all the scenarios
- Place details of scenario into Financial Model
- Note down all the outcomes from difference scenarios
- Advice to management based on the derived outcomes
Business planning and risk analysis consider analyzing the sensitive point of each operational factor. Sensitivity analysis offers information for inputs and outcomes of the financial model. Based on the outcomes factors, then it is easy to measure the future steps in business operations. The outcomes from the financial model can be ranging from different aspects. For an instance, a small change in the factor can affect a remarkable change in the outcomes. This can be considered as the underlying risk in the models.
Uses of Sensitivity Analysis
- Analyzing the sensitivity of financial model for uncertain input values of the model.
- Predicting possible outcomes & preparing for unplanned risk factors
- Helps in performing Risk Assessment strategies
- Helps in establishing co-relations between various input and output of the model
- Helps in executing informed decisions
- Helps in searching for bugs in the model
- Helps in decision making
Trend analysis is the process of collecting information for different periods and calibrating in the graph format for further review.
This helps in predicting the future direction of movement and based on that, determining the actions. Trend analysis is generally termed as two different forms as below:
Our steps for Scenario Analysis:
Revenue and cost analysis:
Revenue and cost analysis performs a vital role in understanding the trend analysis in depth. Revenue and costs information can be obtained from the financial statements of the company. The calibration of this information is being done on a trend line for evaluating the inconsistencies and trends. For an instance, a sudden spike in administrative expenses in one month followed by a steep decline in the next month can indicate that an administrative expense was booked twice in the first month.
Thus, trend analysis is greatly useful for risk assessment of financial statements for inaccuracies, so that it can be modified before it is issued for the general use.
Investment analysis :
The investors create a trend line of share prices and use it to predict the future movement of the share price. The trend line can also be allied with other information to check if that relationship can be useful as a forecaster of stock prices.
To measure the possibility of adversative event occurrence, risk analysis plays the vital role. Risk analysis is capable of studying the underlying uncertainty of the given course of action. The actions can be in regards to the future cash flow, portfolio return and other possible economic states.
There are several risk advisory services capable of reducing the future uncertain problems for any organization. This can be eliminated with the help of experts’ guidance. Embedding risk analysis with financial planning and forecasting helps in minimizing the effect of future adverse events. CapActix offers remarkable risk management services in order to take the organizations to the next level.
Brief of ‘Risk Analysis’ methodology
A risk analysis starts with the identification of the adverse events that could occur. Then these events are weighed with the probability metric to measure the probability of the event occurrence. Finally, the estimation is made to measure the impact of the event, if it happens.
CapActix is one of the leading risk management consulting firms in India providing business operations analysis including accurate predictions of uncertain risks.