Spreadsheet risk is defined as the chance of adverse consequences resulting from errors in the creation, modification, and/or use of spreadsheet models. These errors can result in poor supply chain or manufacturing or investment decisions, including the failure to identify investment opportunities. As spreadsheets have proliferated, this risk has become serious. We describe alternative ways to design large spreadsheets to minimize spreadsheet risk. Examples are given of error-prone designs and superior approaches for achieving the same result. Our design conclusions are important even for analysts who are both expert and careful in their personal use of Excel, since they might send their spreadsheet to their assistants for updating data, and s/he might need these guidelines. Some of our examples involve errors that occurred due to poor design in actual projects.
Effective Design of Spreadsheets for Analytics: Methods for Minimizing Errors
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