Budgeting Under Conditions of Uncertainty

Details

Duration: 3 - 5 days
Date: T.B.A 2024
Time: T.B.A
Delivery mode: In-Person
Venue: James Hope Business School - Twin Lakes Estate, Lekki Lagos.
Certificate: James Hope Business School course completion certificate will be issued to participants.

Fees

On-Campus: T.B.A

Open Admissions

James Hope Business School will fast-track your admission into our Short Courses.

Faculty

Faculty Instructor: T.B.A
Industry Partner: T.B.A
Host: Prof. Olu Akinkugbe, Dean of James Hope Business School

Course Outline

Purpose of the course, Definition of budgeting and its significance, Introduction to uncertainty in the financial context.
The Nature of Uncertainty, Types of uncertainties: Systematic vs. Unsystematic, Factors contributing to financial uncertainty, The distinction between risk and uncertainty,
Traditional Budgeting- Historical overview, Strengths and weaknesses in uncertain conditions, Common methodologies and their applications,
Basics of Probabilistic Budgeting – Introduction to probabilistic approaches, Concepts of probability distributions, Scenario analysis and its role in budgeting, Advanced Probabilistic Budgeting Techniques, Monte Carlo simulations in budgeting, Bayesian budgeting techniques, Decision trees and real options in budgeting.
The Role of Sensitivity Analysis- Definition and purposes of sensitivity analysis, One-way and multi-way sensitivity analysis, Limitations and best practices.
Contingency Budgeting- The need for contingency in budgets, Determining the size of a contingency budget, Approaches for allocation and usage.
Rolling Forecasts and Flexible Budgets, Introduction to rolling forecasts, Benefits of adaptive and flexible budgeting, Implementing a rolling budget system in organizations.
Behavioural Aspects of Budgeting Under Uncertainty, The psychological challenges of uncertain conditions, Strategies to manage biases and improve decision-making.
Role of leadership in guiding teams through uncertain budget periods, Tools and Technologies for Uncertain Budgeting, Overview of popular budgeting software, The role of AI and machine learning in predictive budgeting, Integrating financial modelling with budgeting tools.
Case Studies, Review of organizations that navigated budgeting during uncertain times, Lessons learned from past economic downturns, and Exploration of industries particularly vulnerable to uncertainty.
Future Trends and Predictions – The evolving landscape of budgeting, Predictions for future challenges in uncertain budgeting, Skills and knowledge required for future finance professionals.
Wrap-up and Course Reflection, Review of key concepts and methodologies, Group discussions on applications and implications. Feedback and course evaluations

Who should attend the course ?

Financial Professionals: Financial Analysts, Accountants and Auditors, Treasurers and Finance Managers.
Business Managers and Executives: CEOs and CFOs, Business Unit Heads, Entrepreneurs, and Start-up Founders.
Project Managers, Strategy and Planning Professionals, Consultants and Advisors, Management Consultants, Financial Advisors and Planners
Academic Professionals and Students, Researchers: Those in the field of finance, economics, or business studies who are interested in the latest practices and methodologies
MBA and Finance Students
Government Officials and Public Sector Managers
Non-profit Organization Leaders
Investors and Investment Analysts

What are the benefits of taking this course?

Deep Understanding of Uncertainty: Grasp of the various sources and types of uncertainties and how they can impact budgeting.
Advanced Budgeting Techniques: Learn probabilistic budgeting techniques, Monte Carlo simulations, Bayesian approaches, and more, which are often not covered in standard budgeting courses.
Better Risk Assessment: Equip yourself with the tools to better assess, quantify, and mitigate financial risks.
Improved Financial Forecasting: Incorporate uncertainty into forecasts, leading to more robust and realistic financial projections.
Real-world Case Studies: Dive into real scenarios where businesses navigated budgeting challenges, deriving actionable insights.
Software Familiarity: Gain experience with popular budgeting software and understand how AI and machine learning can be leveraged in budgeting.
Diverse Peer Interaction: Engage with professionals from various industries and roles, fostering a broader perspective and potential collaboration opportunities.
Guest Lectures: Access to industry experts and thought leaders, offering a chance to learn from their experiences and insights.
Up-to-date Skills: Stay ahead of the curve with knowledge on the latest budgeting practices, making you more valuable in the evolving finance and business landscape.
Certification or Recognition: Completing the course might provide a certification or acknowledgment that can be added to your CV, signalling expertise to employers.
Enhanced Resource Allocation: Implement budgets that better account for uncertainties, ensuring optimal allocation of resources.
Informed Strategic Planning: Incorporate financial uncertainty into broader organizational strategies, leading to better preparedness and adaptability.
Increased Confidence: Address financial challenges more assertively, having gained a structured approach to uncertainty.
Critical Thinking: Enhance analytical and problem-solving skills by learning to think critically about complex financial scenarios.
Understand Psychological Challenges: Dive into the behavioral aspects of budgeting under uncertainty and learn strategies to manage biases in decision-making.
Improved Team Collaboration: Understand the challenges teams face during uncertain times and strategies to guide them effectively.
Stay Updated on Trends: Learn about the evolving landscape of budgeting and predictions for future challenges.
Skills for Evolving Challenges: Equip yourself with skills that are essential for navigating future economic downturns, crises, or uncertain scenarios.

In essence, participants will walk away from the course not only with enhanced technical knowledge but also with a holistic understanding of how to navigate the complexities of budgeting in an uncertain world. This comprehensive skillset will be invaluable in both personal and professional financial planning contexts.

Recommended Texts

Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of corporate finance (13th ed.). McGraw-Hill Education.
Damodaran, A. (2016). Applied corporate finance (4th ed.). Wiley.
Drury, C. (2019). Management and cost accounting (10th ed.). Cengage Learning.
Lueg, R., & Schäffer, U. (Eds.). (2018). Controlling & management review sonderheft 3-2018: The future of budgeting. Springer Gabler.

Journal Articles

Becker, S. D., Brüggen, A., & Luft, J. (2016). The role of aspiration levels in risky choice: A comparison of cumulative prospect theory and SP/A theory. Journal of Applied Psychology, 101(7), 1086-1102.
Bogsnes, B. (2009). Implementing beyond budgeting: Unlocking the performance potential. Management Accounting Quarterly, 10(3), 1-7.
Emery, D. R., Finnerty, J. D., & Stowe, J. D. (1998). Applied corporate finance: Sourcing and applications. Financial Management, 27(3), 103-114.
Ismail, T. H. (2010). Budgetary participation, managerial performance and corporate performance: Evidence from UK companies. British Accounting Review, 42(4), 227-238.
Libby, T., & Lindsay, R. M. (2010). Beyond budgeting or budgeting reconsidered? A survey of North-American budgeting practice. Management Accounting Research, 21(1), 56-75.

Additional Resources

Guest Lectures: Industry professionals discussing real-world applications and challenges.

Hands-on Workshop: Using software and manual techniques to practice uncertain budgeting.

Group Projects: Teams creating budgets for hypothetical companies under uncertain conditions.

The course is designed to give finance professionals, managers, and decision-makers the tools and knowledge to make informed budgeting decisions, even in the face of uncertainty.