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Careers in Finance

Robert DeVos

University of North Carolina

December 9, 2017

Normally, financial sector industry plays an essential role in the growth and development of an economy. In most cases, the financial sector is multifaceted with various jobs which require a wide variety of knowledge and skills that enable people to perform these jobs. Most importantly, the financial sector plays a significant part in the strategic management of an organization processes, and hence, it contributes significantly to the overall success of the organization. Consequently, students who study finance in college are needed in almost every organization that is concerned with the overall necessity of financial sector in the economy (Mattern, 2016, p. 34). In this case, therefore, the two most thrilling career choices for people with financial education include Actuary as well as Investment Banker.

Investment Banker is one of the most intensive and glamorous career option that a person with a financial education can pursue. On this note, Investment Banker career choice involves many activities that are essential to the financial sector. In most cases, an Investment Banker is responsible for facilitating and helping the issuance of company securities as well as ensuring that these securities are available for stakeholders to purchase. Besides, the investment banker is responsible for monitoring the securities trading in an organization and offering financial advice to the company and the rich individual investors (Oyer, 2006, p. 55).

On the other hand, an investment banker determines capital opportunities, negotiates and structures investment deals, and performs public and private financial businesses. Most importantly, investment bankers act as the intermediaries between probable investors and those who want capital. Depending on the type of the organization, commonly investment banker’s customers consist of medium size and large-scale businesses, non-profit corporations, governmental organizations as well as individual customers.

Presumably, the investment banking career option starts with an individual being considered as a financial specialist. As the individual grows and develops in this career in an organization, he or she can become the managing director of the financial department. Therefore, the investment banking career choice is flexible and allows an individual to develop and grow his or her financial skills further and hence offering an individual an opportunity to become the managing director of the organization.

Subsequently, the essential component of investment bankers is that they learn how to develop financial instruments, sell these financial tools and support them with appropriate finance. In fact, investment bankers do indeed specific processes that need some whole lots of skills and knowledge that are actually rare to find in many people. Eventually, the investment banking sector not only sees the company’s success through increased profits but also benefits the investment banker who takes home a hefty salary.

The primary essential skills necessary for an investment banker is a strong intelligence in analytical methods, mathematics, economics as well as finance. Furthermore, an investment banker needs to have the skills and the desire to solve complex issues, finding advanced answers and above all possess problem-solving skills. On the same note, diligence, hard work, broad-minded and self-discipline are also crucial for an investment banker. Undoubtedly, an investment banker should have solid writing skills since he or she has to present ideas very positively and creatively so that the stakeholders and investors can be convinced about the project and hence place their money on the deals proposed by the investment banker. Eventually, investment bankers should have relation building skills since it is their social connection with other people that take them a long way in the finance industry (Oyer, 2006, p. 63).

Over the years, the demand for people with financial education is growing considerably in the insurance sector. In this case, these people work in various positions such as Actuaries, as well as in the investment sector of the insurance organization. Specifically, these jobs require both theoretical and practical knowledge regarding finance (Petrillo & Constantino, 2011, p. 53).

Precisely, actuary career option is the highest paid profession in the insurance sector. Normally, an actuary is responsible for solving a wide variety of financial issues related to insurance investments, financial forecasting as well as financial management in the company. Besides, actuaries are responsible for structuring the premium tables for the organization after examining the risks related to insurance.

An actuary plays an essential role in adding the value of a business or an organization. In fact, the significance of an actuary can be demonstrated from the fact that an actuary is the backbone of any insurance company. According to the Department of Labour Statistics, the highest number of actuaries work in healthcare, life, casualty and property insurance to design insurance strategies in a manner that enhances production of high yields and competitive premiums.

Most importantly, actuaries help organizations to predict the uncertainties which can be experienced by the company. On the other hand, they assist the insurance companies in structuring the pricing strategies of the company. Another role that actuaries play which adds value to the insurance organization is through predicting the reserve amount which the company requires to maintain and meet its future expenses. Apart from examining the financial consequences of the uncertainties in an organization, actuaries also determine the possible solutions to minimize the probabilities of the occurrence of such actions.

One of the essential skills that an actuary must have is the ability to utilize statistical and financial tools to make profound decisions concerning the organization. An actuary also needs to be competent in utilizing statistical modeling programs as well as be knowledgeable in using Microsoft office tools. Subsequently, actuaries need to possess strong interpersonal and communication skills. This is because in most cases, they are required to work with different people such as programmers, senior managers and other officials from a different financial background (Petrillo & Constantino, 2011, p. 34). Therefore, their strong communication skills will be a significant asset since they can effectively communicate and explain the complex and technical terms relating to their profession simply. Besides, they can perform as team leaders in various projects started by their respective companies. In this case, therefore, strong interpersonal skills aid actuaries to handle different peoples with different personalities.

The career option that I would recommend is that of an investment banker. The attractive feature of an investment banker career option is that an investment banker starts with an excellent pay structure. Besides, the bonus that one earns is nearly equivalent to the total annual basic salary. An investment banker can utilize his or her relationship building skills to go a long way in his or her career. Most significantly, a person gets an opportunity to meet many senior peoples from different companies and learn a lot from them.

References

Mattern, J. (2016). Careers in finance.

Oyer, P. (2006). The Making of an Investment Banker: Macroeconomic Shocks, Career Choice, and Lifetime Income. doi:10.3386/w12059

Petrillo, T., & Constantino, R. J. (2011). Careers in Finance. The Portable MBA in Finance and Accounting, 559-576. doi:10.1002/9781118257494.ch21