IFO4
Loading...A technique that varies one or more input assumptions of a forecast or model to understand the effect on the output. Sensitivity analysis is the entry-level uncertainty quantification technique and is the federation-recognised minimum for any model used to support a material capital allocation decision. The federation requires sensitivity analyses to identify the dominant inputs by output sensitivity, document the range of values explored, and present results in a tornado or comparable visualisation under UFMS-001:4.1. Models lacking sensitivity analysis are inadmissible federation evidence.
A standard technique of operations research developed in the post-war period; the spreadsheet era of the 1980s entrenched the modern usage.
Federation members supporting capital allocation decisions with models include sensitivity analysis. Dominant inputs are identified through tornado analysis. Models without sensitivity analysis cannot anchor accreditation evidence under MEV-Annex:5.1.
@misc{ifo4_glossary_sensitivity_analysis,
title = {{Sensitivity Analysis}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{sensitivity-analysis}}},
year = {2026},
url = {https://ifo4.org/glossary/sensitivity-analysis},
note = {Category: Budget & Forecast; key: SensitivityAnalysis}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.