What are the Common Challenges in Financial Forecasting?
Financial forecasting can be challenging due to several factors:
Data Accuracy: Inaccurate or incomplete historical data can lead to unreliable forecasts. Market Volatility: Rapid changes in the market or economy can make predictions less reliable. Complexity: Complex business operations and multiple influencing factors can complicate the forecasting process. Bias: Personal biases and optimistic assumptions can skew forecasts, leading to unrealistic expectations.