Irrespective of the profession you are in, you need to put in a considerable amount of hard work in order to earn your bread and butter. The money that you earn through your hard work is then put to use. For an average person, a section of this money goes into meeting the daily needs and requirements.
From the remaining income (which may be well called excess income) a portion goes into meeting their luxuries whereas the rest of it is saved or invested. There are a myriad of choices available to an individual with respect to the investment that they want to make. Matters become even more complicated if the client in question is a firm and not an individual. Not only does the amount involved increase by manifold, but the number of options available also increases by leaps and bounds.
Now it is obvious that when an investment is made, a certain amount of profit or gain is expected out of it. The idea here is to maximise the profit. It is not possible for everyone to have a good understanding of investments and have the capacity to make smart monetary decisions. In such a situation, the job of a financial risk or investment analyst comes into the picture. This article speaks at length about this particular career path.
• Job Roles
It is inevitable that the effect of any investment on the part of an individual or firm will have certain effects on its overall finances. To understand the impact of this, firms and individuals go ahead and hire financial risk advisers. The role of these people is to recommend ways and measures to mitigate these types of risks. Financial advisers research on the past and present economic occurrences to find a pattern and predict future events. Appropriate predictions on their path will make their clients more money, which will in turn pave the way for a successful career as a financial adviser.
• Career Scope
For experts in this field, there are innumerable career opportunities in the sectors of banking, finance and accountancy. Broadly speaking, risk analysts specialise in one of the four categories, viz., credit risk, regulatory risk, operational risk and market risk. An investment analyst with a specialisation in any of these fields is likely to find jobs both in private as well as government sectors.
The Indian Banking Services, Reserve Bank of India and Probationary Officers' entrance tests are examinations that professionals in this field can go for in order to land themselves with stable jobs. The defence sector is another field where there is a great requirement of these type of highly trained people. Needless to say, the opportunities in this field are plenty.
• Getting Into This Field
As is obvious from the nature of the job, a background in commerce is recommended for people choosing to make a full-time career out of this. Theoretically, graduation in any field should suffice for this job. However, speaking from a practical point of view we can see that there is intense competition in this field.
In order to survive the cut-throat competition here, it is advisable to go for a basic degree in commerce. This may be followed by gaining extensive knowledge and practise in quantitative papers like finance, economics statistics, accountancy and mathematics. Remember, the better you are with numbers, the higher will be your chances of making it big in this profession.
If you are really passionate about this profession, you can consider taking up the International Diploma in Risk Management (which is by far the most coveted certification in this field).
• Monetary Compensation
If you are really good at what you do, this is profession where you can literally mint money. In the Indian context, for a fresher in this field the average salary ranges from 3 to 5 lakhs. The icing on the cake here is the fact that any firm, irrespective of its size, will require a financial analyst.
Thus, the chances of specialists in this field finding themselves unemployed is very bleak. As an employee (or a third-party vendor), the monetary compensation that you take home will depend on a number of factors like the size of the establishment that you work for, your job experience and the city that you are working in.
• Working Hours
The working hours for someone in this profession will depend on a lot of factors and may range between 8 and 14 hours a day. Weekdays are usually 6 days long and very few risk analysts get the opportunity to work from home. This is a taxing deadline-based job and situations may arise when there is practically no work to do.
At other times a financial risk analyst may well have to stay in office beyond working hours in order to meet their targets. You may have to work in shifts or even travel overseas if your client is from some other country. For most investment analysts a typical month involves at least one out of town business visit.
For financial risk analysts the job pressure is particularly high if they are working in the investment banking or the corporate finance sectors. However, jobs in these sectors are more challenging at an intellectual level and that is why many toppers in this field opt for these professions.