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Cascading Effect

The domino effect of changing a variable in a model. The multiplier effect.

The cascading effect can be either physical or financial in nature:

  • Physical Cascade: The effect that an downstream or upstream asset has on other interconnected assets.
  • Financial Cascade: Changes to the inflation rate have I. Care is trying to avert the cascading effect of one problem compounding another in his building.a cascading effect through the funding models in a reserve study
See also: multiplier effect

The cascading effect is initiated by the following changes:
Cash flow table indicating the relationship between opening and closing balances.
Fig. Cash flow table indicating the relationship between opening and closing balances.


Inflows and outflows in graph format
Fig. Inflows (green) and outflows (red) on a graph
.


See also:

I. Care is trying to avert the cascading effect of one problem compounding another in his building
Fig. I. Care is trying to avert the cascading effect of one problem compounding another in his building.


I. Care is trying to connect the dots in order to reveal the patterns in the data that underpins his assets, including trends.

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