Loss Forecasting — predicting future losses through an analysis of past losses. Past loss data must usually span a sufficient number of years (5 or more) to achieve some degree of credibility.
What is a profit and loss projection?
A profit and loss, or Pɪmp;L, forecast is a projection of how much money you will bring in by selling products or services and how much profit you will make from these sales.
What is a twelve month profit and loss projection?
The 12-Month Profit and Loss Projection Worksheet is used by companies to project profits and losses for up to 12 months in the future.
How do you predict future losses?
Why is loss forecasting necessary when making a decision about whether to retain or transfer loss exposures? Loss forecasting is necessary to enable the risk manager to make an informed decision about whether to retain or transfer loss exposures.