The role of a Financial Analyst is to identify the most advantageous investments for the clients of a bank or a financial institution. Walters People explains in detail the main tasks and challenges of this function.
WHAT IS A FINANCIAL ANALYST?
A Financial Analyst works on behalf of a banking or financial institution and for the benefit of clients. It collects as much information as possible on listed companies in order to provide them with the information they need to make successful investments.
This information gathering is done in different ways. The Financial Analyst draws economic reviews and other useful documents, whether through the press, the Internet or audiovisual documentaries. He may even come to the sites of the companies in question to discuss with the managers.
A good methodology and above all a lot of rigor;
A broad culture of society and the market economy.
The financial analyst is present in all spheres of society. Its role is to assess the financial impacts of decisions affecting all areas of activity – whether in marketing, human resources management, information systems or others.
They will detail the strategies adopted by their company, the highlights and the difficulties that it has already faced. If it is an industrial company, a factory visit may generally be essential. It will then be for the Financial Analyst to dissect all the figures whether they relate to production, losses, turnover achieved or raw material needs.
On the basis of all these data, the Market Economist draws up a table allowing the development prospects of the company to be deduced. This allows it to advise its clients on the leeway to be retained, on the extent of the risks that it is advisable to take or on the volume of investments to be made.
WHAT IS THE TYPICAL PATH OF A FINANCIAL ANALYST?
Graduates from major business or engineering schools, holders of a diploma from the SFAF or a DESS in Economics or Finance can enter the profession of Financial Economist. If these diplomas are accompanied by professional experience, the candidate has a better chance of successfully completing his mission. Having held a post of specialist engineer in an industrial sector or a specialist financial executive is therefore an asset.
WHAT ARE THE QUALITIES OF A FINANCIAL ANALYST?
Being a Market Economist involves, in many cases, immersing oneself in a field totally distinct from one’s original training.
This is the case, for example, of a business school graduate who has to carry out the financial analysis of a company specializing in nuclear power. Good adaptability is therefore essential. A good sense of communication is also essential, since it will involve addressing different types of interlocutors. The spirit of analysis and synthesis is essential.
MISSION OF THE PROFESSION: FINANCIAL ANALYST
Reporting hierarchically to a head of financial studies or a department manager, its main missions are as follows.
– Collection of information: it must assemble the documents and financial statements, the basis of its analysis. It may also be required to meet with the financial directors and general managers of companies.
– Analysis of results: it performs comparative analyzes and offers an interpretation of the value and future of the company. He is often specialized in a sector. – The production of recommendations: its financial studies determine, depending on the context, the value given to the company and its development prospects. For this, it from its analyzes clear and reasoned information that it often presents to its clients in the form of financial notes or studies. The economist advises on the purchase or sale of shares based on the studies produced.
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