The purpose of this paper is to take an in depth look at two financial career options (financial managers and investment bankers) which someone with an education in finance might pursue. This incorporates an explanation of the value that such a post would add to a company. I also discuss the essential skills which would make an individual successful in each of the described positions. I then go on to recommend one of the career options, and distinguish the most engaging features of the position.
In order to secure an entry-level job in finance, it is usually mandatory to have a BA in a business related subject such as: accounting, statistics, finance, or business administration. Furthermore, any graduate who is planning on moving into the upper ranks of the industry, should seriously think about taking an MA in finance, economics or business administration (Business Administration Information, n.d.)
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Specialty Areas for Financial Managers
“Almost every firm, government agency, and other type of organization employ one or more financial manager” (Rutgers, n.d.). According to the Bureau of labor Statistics, the specialty areas for financial managers include:
1. Controllers. They set up the financial studies which forecast and summarize the financial status of an organization, including: balance sheets, statements of income, and expense analyses or future earnings. They also set up reports which regularize businesses for governmental agencies. And frequently manage departments including budget, audit and accounting.
2. Credit managers. Their duty is to manage the business of a company, and involve supervising the collection of overdue accounts, determining credit ceilings, and setting the criteria for credit rating.
3. Cash managers. They supervise the company’s in and out cash flow (including making projections), in order to align with the investment and business requirements of the company.
4. Risk managers. They are charged with managing the financial risks of an organization via the use of strategies such as hedging, in order to offset or limit financial uncertainty, loss or exposure.
5. Insurance managers. They are in charge of making choices connected to taking out insurance to shield an organization against losses. This covers areas in the fields of lawsuits brought against the organizations, and disability payments for workers who are injured while working. The Bureau of labor Statistics: “reports that the average median salary for financial managers in May 2010 was $103,910” (Business Administration Information, n.d.)
Financial Managers
A finance degree from a good university or college, prepares an individual for a substantial financial management career. The main duty of a financial manager is being accountable for the financial health of an organization. If this is done well, it could add enormous value to the company, as it would be geared to generate a healthy balance sheet, good profits, and wise investments. The financial manager undertakes direct investment activities, generates reports, and produces plans and strategies for the long range financial goals of the organization. These days, due to cutting-edge technology, a financial manager’s chief duty is to concentrate on data analysis and offer guidance on ways to increase profits. His or her duties may also be specific to their particular industry or organization. For example, financial managers in the field of health care must be conversant with issues involving health care finance, likewise, financial managers in the field of government must be conversant with budgeting processes and government appropriations. Furthermore, financial managers need to be well versed with the regulations and tax laws within their industry (Business Administration Information, n.d.).
The essential skills which would make an employee successful in this position include:
strong analytical abilities to allow the financial manager to able to carry out an analysis of the financial operations of an organization, and to be able to render any required adjustments. First class math skills and detail orientation are also essential to guarantee that financial reports are accurate. Effective communication skills are another plus, as data has to be discussed with executives and other workers in a concise and clear manner. In addition to these attributes, an excellent work ethic is also essential (Chron, n.d.).
Investment Banker
Being an investment banker involves arranging the issuing of corporate securities, and rendering them available for acquisition by investors while simultaneously transacting securities trading and delivering financial guidance to both affluent individual investors and corporations. An investment banker could potentially add a huge value to the individual’s or corporation’s portfolio if he or she gives good financial guidance. Generally speaking, investment banking firms comprise various groups and divisions with a large number of responsibilities and objectives. The duties of an investment banker include:
dealing with mergers, acquisitions and securities issuers, as well as the trading desk or professionals responsible for bonds, stocks and trades, along with other secondary market securities (Investopedia, n.d.).
The essential skills which would make an employee successful in this position include:
a mixture of strong interpersonal and analytical skills. These include: high people skills, high communication skills, high analytical skills, medium sales skills, high creative ability, high ability to synthesize, medium initiative, and a being a good team player (Careers in Finance, n.d.).
Career Option Recommendation
The career option I recommend is being an investment banker. This is because there are several attractive features involved in the position: there a number of the most intense and glamorous careers in finance are investment banking jobs, and if you are successful, the world is your oyster, and you can earn a six digit salary plus bonuses. According to Wall Street Prep, a: “First Year Investment Banking Analyst Base: $85k Bonus: $55-$75k (2014 data), [a] Second Year Investment Banking Analyst Base: $90k Bonus: $75-$95k (2014 data), [and a] Third Year Investment Banking Analyst Base: $90k-$100k Bonus: $95-$115k (2014 data)” (Wall Street Prep, n.d.).
- Business Administration Information (n.d.). Retrieved from http://www.businessadministrationinformation.com/resources/explore-jobs-with-a- finance-degree
- Careers in Finance (n.d.). “Investment Banking: Skill and Talent Requirements.” Retrieved from http://www.careers-in-finance.com/ibskill.htm
- Chron (n.d.). “What Types of Skills Are Required to Be a Financial Manager?”
Retrieved from http://work.chron.com/types-skills-required-financial-manager-21355.html - Investopedia (n.d.). “Financial Career Options for Professionals.” Retrieved from
http://www.investopedia.com/articles/financial-careers/08/financial-career-options-
professionals.asp - Rutgers (n.d.). “Finance Major Overview.” Retrieved from
http://www.business.rutgers.edu/undergrad-new-brunswick/academics/finance
