Modelling skills are becoming the most important and universal skill in project finance, according to specialist firm Operis.
The company is releasing an eBook examining how financial modelling skills have become essential for professionals in every discipline across the finance industry.
Jonathan Swan, Director of Training at Operis, commented: “The range of professionals that interact with a financial model in the course of their work is always growing, and yet training in model interrogation and analysis is not growing to match.
“What the eBook highlights is the fact that people in different disciplines need different things from the model. Currently, many training courses on offer are ‘one size fits all’, but we believe they should be tailored to the individual profession.”
The new eBook argues that assessing increasingly sophisticated deals is dishearteningly time consuming for junior finance professionals and veterans alike. It particularly addresses the struggle of senior professionals, whose experience was gained in an era when models played a less central role in concluding transactions.
It features contributions from experts in the fields of law, finance and accounting who provide perspectives on the roles they play in project finance deals. These interviews have been combined with Operis’s 25 years of project finance modelling and training experience to present a snapshot of the current pressures facing market participants.
Historically, training has only been widely available for developing models, but the areas most useful to bankers, lawyers and bid managers are assessing and interrogating models and aligning contracts and financial models.
“Model interpretation should provide a clear and unambiguous understanding of a transaction’s possible outcomes. These aren’t minor technical matters – they can determine the price in competitive bids, or the difference between success and failure for a project.
“As the importance of models continues to grow in all areas of finance, model interpreting skills are taking an increasingly central, universally important role, added Swan.