What combination of steps should a financial institution take to analyze the impact of economic indicators on their loan portfolio performance using SAP Analytics Cloud?

The correct choice entails a strategic approach to processing and analyzing data which is crucial for understanding the relationship between economic indicators and loan portfolio performance.

Data cleansing is the first critical step, as it ensures the accuracy and consistency of the data being analyzed. Financial institutions handle large volumes of data from diverse sources, and any inconsistencies or errors can skew analysis results. Following this, applying data blending becomes essential, allowing the integration of different datasets, such as economic indicators alongside internal data from loan portfolios. This blending is necessary to develop a comprehensive picture of how external factors influence internal performance metrics.

Lastly, utilizing predictive forecasting plays a pivotal role in anticipating future trends based on historical data. By leveraging this capability, financial institutions can model how shifts in economic indicators might affect their loan portfolios, thus making informed decisions regarding risk management and strategic planning.

This combination of steps forms a robust analytical framework that aligns well with the demands of financial institutions in today's data-driven environment.