Forecasting for Financial Managers

by David Allen
access120 days access
cpd hours4 CPD hours

This course will enable you to:

  • Recognise what forecasts are used for, and who is responsible for them
  • Discuss the principles and practice of statistics relevant to forecasting
  • Explore short / medium range forecasting
  • Look closer at long range forecasting

The rate of change in the business environment is greater than ever before and managers are recognising that they have to spend more time looking forward. For you, the finance professional, this is vitally important but not necessarily straightforward. Coming to terms with judgements about the future, which are subject to significant margins of error, requires a particular set of skills.

As well as describing the principles of forecasting, this course looks at their application, especially in decision-making. It covers interpretative statistics, short / medium range forecasting and long range forecasting.

Looking to the future

  • What are forecasts for?
  • Why has forecasting become more important of late?
  • Where does forecasting fit within a structure of financial control?
  • Responsibility for forecasting


  • Basics
  • Probability of dispersion
  • Correlation
  • Regression

Short and medium range

  • Hedging
  • Predictive modelling
  • Standard costing
  • Budgetary control

Long range

  • Demographics
  • Devolution
  • The value of money
  • Some relevant techniques

David Allen CBE, MPhil, FCMA, FCIS was employed for many years by the Cadbury Schweppes group, holding directorships of various companies, latterly Cadbury Ltd. Whilst with the group, he coined the expression Strategic Financial Management to refer to an approach which enabled the finance function to play a proactive role in the formation and monitoring of strategy, and offered an antidote to short-termism.

During that period he was also president of the Chartered Institute of Management Accountants (CIMA), chairman of the Management Accounting stream of the International Federation of Accountants, a visiting professor at Loughborough University Business School and a member of the Review Panel of the Financial Reporting Council.

He retired from all of the above in order to concentrate on the promulgation of the concept and practice of Strategic Financial Management, through the medium of S. F. M. Ltd. This involved writing, lecturing and consulting, and led to a number of non-executive directorships in private and public sectors.

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