Discussion: Explaining Uncertainties

The one sure thing about financial projections is that they will be wrong—perhaps by only a little, or perhaps by a lot. But managers must still make decisions. In fact, making no decision is really a type of decision—a choice to do nothing.

In your initial post, answer this question: How can you explain the uncertainties in financial projections without scaring your audience?

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Explaining Uncertainties
Financial projections for a given firm or company are associated with huge risks. These uncertainties make it difficult to make financial projections that are correct. However, managers need to produce such projects so that the firm can prepare for the future.

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