There are, however, limitations to working with VBA. These limitations lead to risks that need to be managed. At the root of the problem is a lack of code centralisation, which leads to duplication. This problem quickly becomes unmanageable if there is no automated test facility. This leads to two common questions:
- Am I working with the correct version of the spreadsheet?
- Is the spreadsheet working correctly?
If these questions can’t be answered quickly, it’s a good indication that you have got a problem The problem might materialise the next time hedge computations are done, resulting in an inappropriate hedge. Do you really want to “hope” the correct spreadsheet is going to be used for the next report? In the remainder of this note it will be explained how centralised, tested code can greatly reduce operational risk while speeding up the development process. This means that we don’t have to hope our sheets are correct. We will know.