- Runs a real-world Asset/Liability model
- May take up to 10 minutes to calculate
The What-If home page provides performance results as you hypothesize the future of the bank. Until you alter the assumptions of the bank's future performance you are looking at base forecast results.
What-If analysis is the core of the BANKdynamics simulation. It requires an incredible amount of computer 'brainpower' to process a What-If, because you are accessing the A/L Benchmarks model. Consequently when you push the "calculate" button, be prepared to wait for about 10 minutes until you are able to see the results.
Throughout this process you always come back to the What-If home page to give your next command. Resting on this page between commands is purposeful. It allows you to take time and review your planning process.
What-If is a tool for the planning process. What-if is NOT a high-speed process that will give you a quick response to an impractical guess. It IS a sophisticated and complex financial model, which will help you analyze possible alternative strategies to manage the bank.
The first What-if is your base forecast from the end of the last period.
- The message box offers the opportunity to identify the What-if in 3 different ways. Taking the time to describe your What-if will be extremely helpful. The default is a sequential number, but that is not very helpful beyond the first couple What-ifs.
- Column Label is a simple reference, which can be numeric, alphabetic or some other symbol of reference to you.
- Title is a brief description for quick association.
- Description allows you to elaborate on your intent and gives your team members a clear understanding of what you are trying to analyze.
- Calculate brings you back to the What-if after the A/L Benchmarks model has time to generate new results.
- Continue Revising allows you to go back to the decision form to review or revise your assumptions.
- Hand with the pen lets you modify the description.
- Private: Does not allow your team members or instructors to benefit by your hypothesis. Its purpose is to exclude all others from your work for some
extraordinary reason (i.e. you a very unsatisfied with a particular set of assumptions and you want no one else to see your work). All other work may be very helpful to your team. A piece of your thought process may trigger something in a team member.
- Trash Can lets you delete the entire What-if. You may look at reports, compare reports, or use any of the other functions of the game while the model is
calculating your latest set of assumptions.
Please be patient. Modeling is a complex task. It is much better to plan your approach, thinking through the implications of a decision on both the income statement and balance sheet. Calculate when you are ready to see the results.