Valuing a Bank Takes a Specialized Approach Bank valuation stands apart from traditional business valuation methods. While financial analysts typically rely on metrics like enterprise value (EV) and discounted cash flow (DCF) to value businesses in other industries, these approaches fall short when applied to banks. The banking sector’s unique operations demand a different analytical…
What is Net Retention Rate (NRR)? Net revenue retention (NRR) measures the percentage of recurring revenue retained from existing customers, including upgrades and churn, over a specific period. Net revenue retention is a key metric for evaluating a SaaS business or company’s ability both to retain and grow revenue from its existing customer base. By…
In this episode of What’s New at CFI, we sit down with Ryan Spendelow to discuss the newly launched Risk Management specialization. We explore the essential types of financial and non-financial risks covered in the courses, the relevance of emerging topics like ESG and cybersecurity, and how completing the specialization can enhance job performance and…
January 29, 2025 – Corporate Finance Institute (CFI), the #1 rated online provider of finance and banking training and productivity tools, is proud to announce that it has awarded 50 scholarships to aspiring finance professionals worldwide. This initiative is part of CFI’s ongoing commitment to expanding opportunities for individuals seeking to advance their careers in…
ESG Risk: From Boardroom Decisions to Bottom-Line Impact ESG risks have emerged as a critical concern for finance professionals. From devastating wildfires and labor strikes to regulatory fines and reputational damage, ESG risks pose tangible threats that finance professionals must actively manage to protect their organizations’ financial stability and market position. As ESG disclosure regulations…
A Practical Introduction to Narrow vs. General AI Artificial intelligence (AI) has become an integral part of our daily lives, powering everything from voice assistants to fraud detection systems. But not all AI is created equal. In fact, there are two distinct categories of AI that are critical to understand: Narrow AI and General AI. …
Why We Use Sensitivity Analysis in FP&A Have you ever wondered how businesses prepare for uncertain business conditions, from fluctuations in raw material costs or potential sales volume? In FP&A, analysts rely on sensitivity analysis to test assumptions and predict outcomes. For those new to FP&A, mastering this skill can set you apart early in…
The Strategic Advantage of Using AI in Finance Your finance expertise, combined with knowing how to use AI in finance strategically, creates an unbeatable advantage in today’s hyper-competitive market. As artificial intelligence reshapes the finance profession, the key to success is implementing AI tools thoughtfully and systematically. Here are seven guidelines to guide you in how to get…
In this episode of CFI’s FinPod podcast, we sit down with Dang Duong Nguyen, a young finance enthusiast from Singapore. Join us as we talk about Dang’s journey into finance, his education at Polytechnic, and his self-driven learning through CFI courses. Dang shares insights from his internship at Julius Baer and outlines his aspirations in…
The Role of Expected Loss in Credit Risk Analysis Expected Loss (EL) is a key metric used in credit risk analysis, offering financial institutions a reliable way to estimate potential losses across their lending portfolios. By combining statistical insights with historical data, EL helps banks maintain financial stability, meet regulatory requirements, and optimize risk-based strategies….
