Investor @The Center Group

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Software Company since 1986, Assintel founding partner, holds a portfolio of leading
innovative solutions such as: Finance Atena®,
ERP and Software for Financial Investigations, for the Registry of Reports (Agenzia delle Entrate) and for Anti-Money Laundering (Bankltalia).

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The first FinTech platform in Europe, based on
Al, for Predictive, Economic-Financial
Consulting for any type of Investment and
Business Model, to ensure maximum
Reliability, Opportunity and Profitability for
the Public and Private sector.

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Company that has defined a new way of
Business Communication based on:
Marketing, for defining Strategy, Neuro
Linguistic Programming, for effective content
structuring, and the Art of Cinema to convey
the emotional power that only cinema is
capable of.

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FINANCE ATENA INSIGHTS

Prime Assumption Rules: the Webinar

The logical foundations for a proper predictive economic and financial analysis
WEBINAR
Prime Assumption Rules Webinar

Last Wednesday, February 22, the “Prime Assumption Rules” event, sponsored by Finance Atena, was held on LinkedIn Live and Zoom. The session was moderated by Leandro Nadir Baroncini, Founder & Creative Director of Emotions for Business, who served as the interviewer, and Paolo Zammitti, Head of Finance Atena, who explained to our viewers the concept of Prime Assumption Rules - what they are, how important they are to the reliability of predictive models, and why no one ever talks about them.

Knowing how to manage a massive amount of data is not only essential for those who handle Big Data but also—and above all—for those who analyze an economic entity, since every company, project, asset, or portfolio is a complex system that must be analyzed with the care it deserves. In fact, whenever a company or business—regardless of the sector in which it operates—conducts a predictive, economic-financial analysis of its business model and/or its investments, it must take into account a series of fundamental principles and rules—from the perspective of reliability and accuracy—to ensure the analysis’s success. Finance Atena defines these principles as “Prime Assumption Rules”—that is, the logical foundations from which to proceed when working with a database of data and variables on which to perform this type of analysis. The true starting point, however, is to definean architecture that links the variables and the database data on which the analysis will be performed.

Prime Assumption Rules Webinar
So, what are the rules that define each assumption? The main ones to consider are: Assumption Type, Assumption Timeframe, Assumption Source, Assumption Object, Assumption Level, Assumption Priority, Assumption Volatility/Risk, Assumption Impact, and Assumption Impact on Business Units. The latter is an additional category that can be managed exclusively by Finance Atena.
 

  1. Type of Assumption: this refers to defining the unit of measurement and the nature of the assumption itself, which may vary depending on the specific case in question.

  2. Assumption Time: Assumptions can be divided into four main categories based on time, namely constant, variable by year, month, and/or day.

  3. Source of Assumptions: clearly identifying the origin of the assumptions being analyzed, as this allows for an assessment of the reliability of the data being processed.

  4. Subject of Assumptions: this refers to specific items (costs, investments, revenues, etc.) and their characteristics that may be affected by the assumptions.

  5. Assumption Level: these are levels of analysis, where the first level lists the primary assumptions from which the analysis begins, and the subsequent levels list the derived or related assumptions.

  6. Assumption Prioritization: a principle for determining the relevance of first-level assumptions, in order to identify, first and foremost, the most important ones.

  7. Assumption Volatility/Risk: this refers to changes in assumptions in relation to possible alternative scenarios.

  8. Impact of Assumptions: consider the impact of individual Level 1 assumptions on those of subsequent levels, as well as on results and indicators, to highlight the ripple effects present in the business under investigation.

  9. Impact of Assumptions on Business Units: consider the impact of individual Level 1 assumptions on those of subsequent levels, as well as on the various items that characterize the N business units within the business under investigation.

Finance Atena Webinar

To learn more about the topic of the First Assumption Rules, watch the full webinar and find out how Finance Atena handles all of this.

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