Driver-Based Model
Definition
A financial model in which all outputs are connected to specific operational drivers, such that a change in any driver flows through to affected outputs without manual intervention. A driver-based model is distinct from a model in which outputs are stated as independent assumptions without operational derivation. The requirement for a driver-based model is implicit in the bottom-up forecast standard and the assumption layer standard.
Common Misapplication
The most common misapplication is labelling a model as driver-based when revenue and expense lines are connected to a top-level growth rate assumption rather than to granular operational drivers such as customer count, price per customer, and acquisition rate. A model driven by a single growth rate is not driver-based in the sense required by this Standard.
FFI Standard Reference
This term is defined and applied in Book 2, Section 2.1: The Forecasting Methodology Standard.
Related Terms
Citable URL
This term may be cited using the following permanent URL.
Full citation format: Founder Financial Infrastructure Standard, Beta v0.5, Glossary: Driver-Based Model. https://ffistandard.org/glossary/driver-based-model/. 2026.