50% financial teams fail on short-term forecasts, or err majorly: TCS study

Only 54% say their teams possess sufficient risk assessment capabilities. These execs estimate that on average, 43% of their financial planning and forecasting rely on intuition, not analytics

The pandemic has made businesses aware of the role that technology can play, but the lockdowns and complete change in the way businesses are done has made many financial teams struggling to grapple with reality. According to a study conducted by Tata Consultancy Services (TCS) Global Financial Leadership Study: The Next Era in FP&A, many of these executives admit they rely on their instincts rather than data, and their financial forecasting falls short—and it’s especially true during the ongoing pandemic.

The study reveals 50 per cent of respondents say they consistently fail to deliver short-term forecasts or make significant errors. What’s