Every financial guru knows collecting data and calculating the numbers is important, but sometimes there are variables that just aren’t computable. This is what we call a “Key Assumption.”
A “Key Assumption” allows you to add instinctual or speculative variables into the equation. This allows for a better understanding of the data and your calculations. Sometimes there are events inside or outside the control of your facility that you can just assume are inevitable. When performing a risk assessment you need to include those assumptions in order to shine the correct light on a set of data.
Here is an example scenario:
Lets say you’re creating a scenario on the use of iPads in the work environment. What key assumptions can we presume are likely to happen?
Well we can assume that the costs of iPads are going to decline, which will make them more accessible. This could increase the requests or likely hood that your staff will choose to use an iPad. If you’re building your data set with that thought in mind, you need to include that information in your report.
You could also create another scenario where you don’t expect the use of iPads to increase, which would generate an alternative scenario.
Make sure to add Key Assumptions to your reports.
