JP Morgan incurred losses estimated at nine billion dollars in the 'London Whale' case and it turns
out that a major cause was a flaw in an Excel spreadsheet. A formula
picked up a sum when it should have taken an average, leading to a series of
catastrophic decisions.
What may be even worse, the economic model that has been used to justify austerity policies across the western world in recent years incorporates an Excel error that invalidates its calculations. In fairness, the model's authors do claim that their conclusions would be the same with the correction made.
Excel's flexibility and ease of use make it invaluable in every business. But it can be incredibly dangerous if proper disciplines are not followed. It's very easy to make a mistake and Excel won't tell you when there's been an error - it will just give you the wrong answer.
All Prospero FDs are experts in using Excel in a controlled and disciplined way to support business decisions.
What may be even worse, the economic model that has been used to justify austerity policies across the western world in recent years incorporates an Excel error that invalidates its calculations. In fairness, the model's authors do claim that their conclusions would be the same with the correction made.
Excel's flexibility and ease of use make it invaluable in every business. But it can be incredibly dangerous if proper disciplines are not followed. It's very easy to make a mistake and Excel won't tell you when there's been an error - it will just give you the wrong answer.
All Prospero FDs are experts in using Excel in a controlled and disciplined way to support business decisions.
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