Unlocking Rolling Forecast

In an economic climate characterised by instability and uncertainty, companies need to be agile and responsive if they want to remain competitive. Rolling forecasting is an interesting approach to anticipate market fluctuations and continuously adapt financial strategies.

As Florian Jouvenot explains, “Rolling forecasting is a management tool that complements the traditional budgeting approach and makes it possible to optimise the forecasting and performance monitoring process”. He adds that this system “is comparable to an up-to-date forecast of recent events and progress”. Over a rolling period, usually between 15 and 18 months, it allows financial forecasts to be updated regularly, considering economic fluctuations, new opportunities, emerging risks and other uncertainties.

This approach has several advantages. According to Pierre Gauthier, these include “strengthening the link with the business by involving it more closely in the forecasting process and allowing appropriate action plans to be triggered, monitoring the implementation of the strategy over time without the traditional stop-and-go of budgeting, and taking better account of operational realities by basing forecasts on the latest data and events”.

Read the full article by Hugues Robert published in Daf Magazine on June 25 2024.