Financial Modeler's Corner: Ian Schnoor speaking about dynamic models

Is this right? I asked my team to update something or to give me a new answer to run a scenario in the model, and they told me it would take a week. Is that right? Should that be the case? And I always say, well, no, I mean, it really. It should take about 15 seconds. They should get you the answer. But I know what's happening. What's happening is they had 19 files all interconnected, and they had to make that change in 42 different spots. And they had to run a bunch of tests and they had to check it, and they had to make sure and validate that every time they made a change that it was flowing through and working, and all the files were updated. And they had a ridiculous. I knew it without even seeing it because I've seen it a hundred times. And so it was impossible. That's what we call, you know, a model being dynamic. A dynamic model means that one change flows through everywhere perfectly beautifully, and you can get an answer seamlessly, instantly. And many models are not dynamic. They need to be updated manually, changed all over the place. So, yeah, we talk about that a lot at the fmi.