Add Sensitivity Factors to Dashboards

SensitivitiesDashboardsModule components
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James Longden A+ 103
Add Sensitivity Factors to Dashboards

Another question that came through support recently: How can I add a sensitivity factor to a dashboard, so that the CFO can see how sensitive the analysis is to changes in XYZ.

There are a couple of ways to approach this.

One approach is to build the sensitivity factors into the dashboard, add links out and link into the relevant modules. This is the approach taken in the DCF Valuation example model.

A slightly easier approach is to insert components into the module of the content that is being sensitized and build straight in, without the need for links.

Let's look at a quick example model where we want to add revenue sensitivity factors (note: these are single points rather than groups as used in the scenario analysis).

With the dashboard selected, we simply add a component above this BUILD / COMPONENTS / ADD ABOVE and select which module we want to make this new content a part of, in this instance the revenue module:

We can then build the sensitivity factors straight into this component and work with the content of the revenue module (links to headings and calculations), without having to do any links work.

This gives the appearance that the new component is part of the dashboard but obviously it's part of the revenue module.

Now the CFO / model stakeholders can sensitize the revenue and see the immediate impact on the outputs below.

There's nothing to stop you having multiple components on top of the dashboard, for expenses, interest rates, etc.

There's also nothing to stop you having a revenue module with multiple sensitivity components, i.e. one on top of each dashboard, other than the risk of double-sensitivities.

Change the module component name, add in sensitivity checks to inform the user that a sensitivity is running and you have a sensitivity panel ready to go!

Cheers. J.