Generally speaking, the world of finance is more about the numbers than it is about the math involved in crunching them. Those numbers add up, however, and someone has to deal with the massive amount of information constantly being fed down the pike of the world’s major financial markets. The financial analyst applies advanced statistical analysis to the huge amount of financial information with which their employer is directly concerned, reducing it to that which of direct import, and drawing up comprehensible reports based on their analysis, according to Investopedia.
So, how does the position actually work; what makes a financial analyst so important, not to mention one of the most coveted positions in the financial world?
What Does a Financial Analyst Actually Do?
This position is that of a professional investigator and researcher, who explores the economic circumstances of their individual organization, those of competitors, and that of the market as a whole. They draw upon a dizzying array of data along multiple vectors, then reduce it to the bare essentials, to make recommendations to their company’s administration about where to go next (in terms of major corporate decisions). They often answer directly to the senior executive officers, or to the board of directors, and the input of a qualified financial analyst is taken very seriously. An analyst’s reports can make ,or break, a company, sometimes in a surprisingly short amount of time.
Qualifications and Educational Background
A prospective financial analyst needs to start working towards their goals as an undergraduate, pursuing courses in business management, economics, mathematics, and accounting. Business management and economic undergraduate degrees are particularly popular among today’s junior analysts. At the graduate level, a wide range of master’s degrees are highly sought-after, with computer science, business management, physics, and engineering (for the associated emphasis on analytics) representing some of the most gainfully employed.
Opportunity Within the Industry
Within the world of finance, financial analysts have unusually strong and highly varied math skills, while being equivalently well versed in communications, financial management, administration, and other skills that are in high demand throughout the financial industry. This makes them highly qualified for a wide range of professions. A company or firm will often try to hang on to its best analysts by offering them additional employment incentives, including executive-level promotions, and if that isn’t good enough, a qualified professional can always find rewarding work elsewhere in their field. The median entry-level income for a financial analyst is nearly $90,000 per year, with junior and senior positions, incentives basedon employment duration, and a host of lucrative benefits.
Related Resource: What Careers are Available with an MBA in Accounting?
In the world of finance, financial analysts are very much the engines that drive the industry. They provide the information which empowers their fellow financial professionals to make decisions that result in the growth of assets, as well as the making of profitable trades (and the dumping of unprofitable investments before they crash). Their many functions allow the industry to operate smoothly, day-to-day and long term, reducing the likelihood of sudden and unexpected catastrophes. These crashes and burst bubbles could otherwise devastate entire companies, and put thousands of people out of work.