Increasing FP&A’s Effectiveness by Integrating Risk ManagementFP&A Research Guide

Value is important to all organizations. It's often highlighted in company mission statements and taken into consideration with financial goals. However, success is not guaranteed, which introduces risk: risk is any uncertainty that could lower the value and diminish the success of an enterprise.

FP&A is naturally connected to risk management, as it already addresses volatility, uncertainty, complexity, and ambiguity from efforts to forecast and project financials forward. In Association for Financial Professionals' (AFP) guide get a detailed look at how FP&A can improve its craft by incorporating risk management principles. FP&A studies trends and variances to plan, reacts to changes in the market and operations, and revises its estimations. Trends in risk management also bring FP&A and risk closer together; in recent years, the risk management field has been moving in a similar direction to finance, broadening its scope from event-driven losses to a forward-looking view of risk as anything that obscures the pursuit of value.

Download the full Research Guide to learn:

  • How risk methodologies can Improve FP&A
  • How FP&A and risk can work together
  • Tactical area's of intersection
  • Why risk management and FP&A are growing closer