Post by International Valuation Standards Council (IVSC)

The valuation profession operates in an era of complexity. Geopolitical instability, rapid technological change, AI disruption, climate-related financial risk – these are not temporary headwinds. They are structural features of the environment in which valuers now work. In that context, the question of how valuers communicate uncertainty to the people who rely on their work has never been more important. Our latest Perspectives Paper draws a clear distinction between two concepts that are often conflated. Valuation risk – the possibility of errors or weaknesses in the valuation process itself – can and should be mitigated. Value uncertainty is different. It is not a sign that something has gone wrong. It is an inherent feature of valuing complex assets in complex markets, and it needs to be understood, managed and communicated with care. The paper is the second in a series from our Valuation Risk Working Group, and it carries a clear message for both valuers and the users of valuations: transparency around uncertainty strengthens confidence. It does not weaken it. We are also seeking input from stakeholders through five consultation questions included in the paper. We would welcome your views. 📄 Read the full Perspectives Paper: https://lnkd.in/ejRJrt34 #Valuation #IVS #ValueUncertainty #IVSC #ProfessionalStandards