FP&A functions are not well equipped to steer companies through this crisis
Impact assessment – With the need to constantly update the forecasting models, the traditional planning and forecasting frameworks most organizations use prevent FP&A teams from completing a comprehensive impact assessment.
Financial stress testing – Organizations that have not implemented connected planning or driver-based forecasting are finding it difficult to adequately stress-test for the worst-case scenarios and enable their businesses to plan for contingencies.
Data analytics and machine learning (ML)-driven scenario modeling – Though machine learning has made inroads in some organizations' forecasting and planning processes, in this situation, some ML-based models are struggling because of the lack of historic data to train the algorithms.
Working remotely and balancing regular versus additional work – FP&A teams are not set up to work remotely as they require smooth coordination between business functions and finance. Continuous forecasting and the need for analytics is putting pressure on already-inundated FP&A teams. Firms that have broken data models or rely on spreadsheets for reporting are struggling to manage the disruption.