SMART Financial Modelling

Best practice modelling methodology

Corality is passionate about best practice modelling. We model according to the best practice guidelines outlined in the SMART modelling methodology.

The SMART modelling methodology was developed jointly by Corality and Navigator Project Finance (Navigator is part of the Corality Financial Group) and builds on the best practice modelling methodology we both have shared since our inception.

The SMART financial modelling methodology meets the needs of decision-makers and financiers across all major project finance industries. It is a set of best practice guidelines, internationally applauded for effective and professional financial modelling.

The SMART approach to modelling decreases model risk and increases the confidence of all users – it helps people build better models.

The SMART best practice modelling methodology will:

• Increase user and management confidence
• Reduce model risk
• Increase modelling productivity
• Allow model audits to be performed on time and cost effectively

By applying the SMART methodology Corality’s model developers can ensure best practice guidelines are followed and achieve user transparency, user friendliness and user flexibility. This practice decreases model risk and increases the confidence of all users.

Best practice modelling - usability focus

The SMART modelling methodology is focused on the user. It believes that usability is the key attribute of any successful model. The SMART approach to modelling is therefore practical, rather than theoretical. It aims to accommodate the needs of a wide range of users, each with their own objectives and priorities. SMART improves the efficiency and confidence of all users – from model developers, managers, debt financiers, equity investors and model auditors to the CFO and Board of Directors.

The SMART approach - transparency, flexibility and presentation

The SMART modelling methodology emphasises transparency, flexibility and presentation and introduces guidelines which illustrates how this can be achieved in Excel. When followed, these guidelines will make sure best practice modelling guidelines are followed and secure the development of robust and flexible financial models that achieve not just their design objectives but the objectives of all users.

For more information about the SMART modelling methodology including the SMART user manual and demo model, follow the below links.

Smart modelling methodology – everything you need to know about the SMART best practice modelling methodology

SMART user manual – increase your modelling productivity and start modelling the SMART way

SMART demo model  – download the SMART demo model to get started!
Having trouble with that .xlsm file? Download the ZIP file instead

Download our Financial Modelling Brochure