About What-If Analysis

What-if analysis is a core decision-making technique used to evaluate the impact of varying input values on key outputs in a spreadsheet model. A spreadsheet model contains input cells (assumptions, decisions, variables) and output cells (results, KPIs, or calculated values) linked via Excel formulas.

In a typical What-If scenario, you might want to understand:

• How would a 10% increase in raw material costs affect total profit?

• What happens to ROI if sales volumes decline?

• Which of my inputs has the greatest impact on total cost?

What-If Analysis in @RISK is a powerful feature, designed to help users understand how changes in key inputs affect outputs in their spreadsheet. It supports both One-Way analyses, where each input is varied individually, and Multi-Way analyses, which simultaneously explore combinations of input values.

 

@RISK What-If Analysis automatically detects all relevant inputs linked to a selected output. Users can define customized input variation ranges, such as fixed percentages, value tables, or statistical distributions. Results are then presented in intuitive graphical formats, including tornado, spider, and sensitivity charts. This makes it simple to assess the sensitivity of outputs with precision and identify which inputs significantly influence the model’s outputs.

 

Transitioning from What-If to Risk Analysis

Once What-If Analysis identifies the key drivers of variability, these inputs can be modeled in @RISK using probability distributions. @RISK then simulates thousands of scenarios in which all uncertain inputs vary simultaneously, just like in real life, providing a complete picture of possible outcomes and their likelihood.