CAREER IN FINANCE
CAREER PROFILE
ACTUARY
Job Description: Actuaries are responsible for developing insurance products and finding fair prices for them. This is done by estimating future payments associated with these policies and finding their present values to derive premiums. Actuaries work with a variety of statistical models and computers to accomplish these objectives.
Job Requirements: Many actuaries have a degree (or a minor) in mathematics or another quantitative area. Many colleges have recently developed degree programs in actuarial science. Actuaries must be especially skilled in using both statistics and computers. In addition, they also must be knowledgeable about a variety of insurance and pension concepts. Many actuaries also must pass a series of rigorous examinations to achieve professional status.
Where Employed: Not surprisingly, most actuaries are employed by insurance companies, especially life insurance firms. However, people with actuarial skills may be employed by larger firms concerned about future pension and benefit liabilities. Actuarial skills are also useful in litigation when there is a need to estimate the value of legal settlements.
Career Focus
Certified Financial Planner

What is it? Certification as a Certified Financial Planner (CFP) is offered by the Certified Financial Planner Board of Standards. This provides professional recognition for those employed as financial planners. The financial planning industry has grown rapidly in recent years and has become increasingly competitive. The CFP program is designed to provide the necessary skills to be successful in this industry and certifies those who meet its requirements.
How is it obtained? Candidates for the CFP study areas related to financial planning. These include insurance, investments, taxation, and retirement and estate planning. This may be accomplished through self-study or by completing courses at a local college or university affiliated with the College for Financial Planning. Study typically takes about two years. Upon completion of each area of study, an examination must be passed, culminating in a comprehensive exam for the CFP designation. After passing the comprehensive exam, CFPs must follow a code of ethics and periodically continue their education.
Basic Requirements: Most candidates for the CFP are currently employed as financial planners. Many of them have backgrounds in accounting, finance, or law. However, the coursework required for the certification enables people of all backgrounds to pass the examinations.
Contact: The Certified Financial Planner Board of Standards, 4695 South Monaco Street, Denver,CO 80237-9811.
 


CAREER PROFILE
CASUALTY INSURANCE UNDERWRITER

Job Description: Casualty insurance underwriters gather and evaluate information about applicants for a policy. With this information, underwriters evaluate risks and write contracts that benefit both the insurance company and the customer. Important information for fire insurance concerns location, type of structure, availability of fire protection, exposure to various conditions and other factors. For liability insurance, the underwriter would consider the potential sources of losses, the probability of occurrence, and the extent of the potential loss.
Job Requirements: Many casualty insurers hire underwriting trainees who have recently earned an undergraduate degree. Insurers often are less concerned about the type of degree than they are about the candidates ability to learn. Consequently, many trainees are liberal arts graduates. Since underwriting involves the proper assessment of risk and pricing of the policy, some analytical ability is required. In addition, the need to contact clients and work with others within the firm requires good communications skills.
Where Employed: Most trainees find employment with the larger insurance firms headquartered in larger cities. Experienced underwriters may be hired by smaller insurers who do not offer training programs. Many experienced underwriters also start their own agencieswhere they represent several insurers.
 


CAREER PROFILE
DIRECTOR OF INVESTOR RELATIONS

Job Description: The director of investor relations is the primary liaison between a corporation and the investment community. He or she frequently communicates information regarding the performance of the corporation and its futureprospects to securities firms and dealers. Additional responsibilities include handling stockholder inquiries, playing a key role at stockholder meetings, and representing the firm during media inquiries.
Job Requirements: This position requires strong communications skills (both written and oral) and a knowledge of finance. The director for investor relations must explain compliance with SEC regulations and "market" the firm to potential investors. Honesty and the ability to develop long-term relationships with the investment community are also desirable traits. An undergraduate degree in liberal arts, public relations, or business is necessary, and successful candidates for these positions should have taken at least one course in both accounting and finance.
Where Employed: Most larger publicly-held corporations employ people in these positions. These firms not only include manufacturers, but also utilities, airlines, and service industries.

CAREER PROFILE
PROFESSOR OF FINANCE

Job Description: Finance professors at the four-year college and university level perform a variety of tasks. obviously, one of the most important is providing instruction to students at both the undergraduate and graduate levels. In addition, instructors may work closely with students on research, theses, and internships. Many finance professors are also active in research and consulting, both of which keep them abreast of changes in the field that they may incorporate in their teaching. Finally, many professors are actively-involved in the governance of their institutions through their participation on committees.
Job Requirements: Most finance professors have earned a Ph.D. in Finance, but many have doctorates in areas such as economics or mathematics. Some professors do not have a Ph.D., and they are more likely to be found at smaller schools or community colleges. Many also have significant experience outside the classroom in industry, financial services, or consulting. The primary requirement for success depends on the institution. "Publish or perish", research oriented schools place a greater emphasis on publications than more "teaching oriented" schools. The most prestigious institutions hire only people who are capable of becoming authorities in their specializations.
Where Employed: Although finance professors are employed at most colleges and universities, larger numbers are found at major universities with large business schools. Fewer finance professors are found at community colleges and liberal arts colleges. Many professors at smaller colleges are required to teach courses in other areas such as economics or accounting. Employment at larger schools provides the opportunity for greater specialization.
 


CAREER PROFILE
CHARTERED FINANCIAL ANALYST

What is it? The Chartered Financial Analyst (CFA)designation is sought by investment professionals to demonstrate their knowledge and skills of finance and investments. This credential conveys important information
about a person's competence and commitment to clients and prospective employers.
How is it obtained? Candidates study a prescribed curriculum consisting of topics related to the investment field. These areas include investment management, asset valuation, portfolio management, and ethical standards. This study may be accomplished individually or in groups. upon completing study, candidates must pass a series of three rigorous examinations. Only one examination may be taken per year.
Basic Requirements: Candidates must have a bachelor's degree in any major. Since the program is considered to be at the postgraduate level, it is assumed that those preparing for the CFA have a background in finance, accounting, and economics. Candidates without these courses may fulfill this obligation with additional study. Successful candidates must also provide professional references and agree to follow an ethical code of standards. In addition, the CFA will not be awarded unless the candidate has three years' experience in the investments field.
Contact: The Association for Investment Management and Research, P.O. Box 3668, Charlottesville, VA 22903-0668.

CAREER PROFILE
COMMERCIAL BANKING: SMALL BUSINESS DEVELOPMENT OFFICER

Job Description: This person's objective is to expand the bank's market share of small business lending. This is accomplished by setting market share/sales goals and developing marketing strategies to attain them. This individual must also develop long-term relationships with businesspeople since many new accounts come from referrals. In addition, the officer must work closely with other bank personnel such as credit analysts and loan officers to develop bundles of services to offer to prospective clients.
Job Requirements: People holding this position usually hold an undergraduate degree and have experience in both banking and marketing. The major field of study is not always as important as an individual's personality and ambition. He/she must successfully prospect for new business and maintain a high profile in the community. Good communication and analytical skills are also required.
Where Employed: Business development officers are employed by commercial banks of all sizes. The emphasis placed on small business lending varies in each institution. However, most banks employ a marketing staff to drum up new accounts and develop long-term clients.
 


CAREER PROFILE
COMMERCIAL BANK CREDIT ANALYST

Job-Description: Commercial banks employ credit analysts to evaluate the financial condition and other pertinent information about a client's ability to make loan payments. Information about a client's creditworthiness is often compiled into a credit scoring system that shows whether there are potential difficulties regarding loan repayment. Credit analysts work closely with loan officers who ultimately decide whether to extend credit to the customer. They also spend considerable time with the loan applicant seeking information ordetails about data previously collected.
Job Requirements: Entry-level credit analysts usually begin work after completing the bank's management training program. College graduates with undergraduate degrees in business, finance, accounting, or economics are frequently hired for the training program. However, many banks also consider liberal arts majors. Successful credit analysts have good analytical skills, the ability to read and interpret financial statements, and the ability to communicate well with the bank's clients.
Where Employed: Credit analysts are employed by commercial banks throughout the country. In addition,
some larger thrift institutions also hire credit analysts who specialize in real estate loans. However, training programs are mostoften provided by the larger commercial banks.
 


CAREER PROFILE
BANK TRUST OFFICER

Job Description: Bank trust officers are responsible for managing the personal portfolios of individuals who are either unwilling or incapable of managing their finances. Trust officers create asset portfolios for their clients by investing funds to achieve investment objectives. Many trust officers also assume the responsibility of paying their client's bills with money accumulated in the trust account. Finally, trust officers are often involved with estate and tax planning for their clients.
Job Requirements: Larger banks often hire recent graduates as trainees in the Trust department. Although some knowledge of accounting, finance, and taxation is helpful, candidates with degrees in liberal arts are also considered. New employees usually receive training in all of the Trust department's functions. Special emphasis is placed on developing expertise in investments and taxation. Trust officers should also have good communication skills and the patience to deal with clients from a variety of backgrounds.
Where Employed: Trust officers are employed by most commercial banks. Larger banks are more likely to hire trainees, and experienced candidates should find employment opportunities in commercial banks of all
sizes.
 


CAREER PROFILE
CREDIT UNION BRANCH MANGER

Job Description: The branch manager of a credit union is responsible for the daily operation of the institution. One aspect of this position involves recruiting, training, and supervising personnel. Another requires the coordination of all resources employed by the branch. The branch manager is also responsible for implementing the policies and procedures of the organization. Moreover, this person must also report to the main office and provide information for control and regulatory purposes.
Job Requirements: Besides a sound understanding of banking practices, a successful branch manager must also exhibit interpersonal and leadership skills. Since knowledge of banking practices is often best obtained on the job, many branch managers have advanced through the ranks - beginning as a teller and progressing up to branch manager. Some credit unions hire recent college graduates as management trainees. A typical training program requires rotation through the various functions performed by the branch for one to two years. Upon completing the training program, the employee works as an assistant manager until ready to assume the position of branch manager.
Where Employed: Branch managers are employed wherever credit unions are found. These may be in a community, place of work, or other type of organization.
 
 

CAREER PROFILE
CORPORATE FINANCIAL ANALYST

Job Description: Corporate financial analysts perform a variety of functions. The scope of the Position depends upon the size of the corporation. Larger corporations offer positions that are highly specialized and smaller firms employ analysts that are responsible for a wide range of functions. Functions performed by analysts in both types of firms include capital budgeting, asset analysis, project and capital cost studies, and investment evaluation. Staff analysts work with personnel throughout the organization and develop a broad perspective of the firm's operations. This experience allows analysts to be promoted to many positions, including nonfinancial, within the organization.
Job Requirements: Newly-hired financial analysts are often recent graduates with degrees in accounting, finance, or economics. Beginning analysts usually work as part of a team consisting of both senior and junior analysts. Some firms also have formal training programs. Successful trainees should have both good analytical and interpersonal skills. Those who show promise are often promoted quickly to Senior Analyst or transferred to another department to broaden their experience. Many senior executives in a variety of functional areas began their careers as financial analyst.
Where Employed: Financial analysts are not only employed by businesses, but also by nonprofit and government organizations. Most analysts, especially entry-level employees, find jobsin medium- to larger-sized organizations. The accounting staff of smaller organizations is likely to assume the duties typically handled by analysts in larger firms.
 


CAREER PROFILE
PENSION PLAN ADMINISTRATOR

Job Description: Pension plan administrators manage all aspects of a pension program for a firm or financial institution. The plan administrator is responsible for the design of the plan and for its execution. Responsibilities include the evaluation and choice of investment alternatives, preparation and submission of plan documents with the Internal Revenue Service, and calculating contributions. In addition, periodic reporting, and compliance with IRS and ERISA regulations must be ensured.
Job Requirements: Plan administrators must have experience in investment and financial analysis. Most have strong research and computer skills to carry out this work. Significant experience working with a variety of plans such as defined contributions and defined benefit plans is also required. Plan administrators must also have extensive knowledge of ERISA and IRS regulations.
Where Employed: Plan administrators may be employed by financial firms, such as insurance companies,that offer pension services to their clients. In addition, many administrators are employed by businesses that offer retirement programs to their employees. These are more likely to be larger corporations and many firms with collective bargaining agreements.

CAREER PROFILE
INTERNATIONAL SECURITIES ANALYST

Job Description: International securities analysts develop investment strategies that involve foreign securities. Analysts research both listed and nonlisted companies for stocks to be selected for equity funds. In addition, the bonds of foreign governments may be considered for fixed-income funds. Analysts spend considerable time researching information about potential investments. Once this information is gathered, they apply evaluation techniques based on statistical models and finance theory to assess risk and expected return. Finally, they apply the principles of portfolio theory to guide them in selecting securities to meet their investment objectives.
Job Requirements: Candidates for these positions may be experienced or hired directly from college. Trainees often have MBAs, with a concentration in finance, and some international experience (language skills, course work, or internship). Most successful candidates for these positions are multilingual and are willing either to live overseas or travel frequently. Many experienced analysts have earned the CFA designation.
Where Employed: Nearly all international securities analysts are employed by financial firms. Increasing interest in emerging markets and international diversification has increasedthe demand for their services by firms such as mutual funds. However, they are likely to be employed by other financial firms such as investment banking firms and pension funds as well.

CAREER PROFILE
SECURITIES BROKER

Job Description: Brokers handle the investment accounts of individual and institutional investors. One service provided by brokers is the execution of client trades. The broker typically acts as a "go-between" who relays an order to a trader who buys or sells the securities. Brokers employed by full-service brokerage firms also help clients select investment vehicles that fit the client's needs. This often involves giving advice about personal financial planning and researching individual securities to fit the plan. Since products developed by the brokerage firm often meet these needs, the broker must skillfully market these services to the client.
Job Requirements: Many firms hire trainees directly from college and seek applicants with a variety of degrees. Most of the training takes place on the job, but some firms supplement this with classroom training in finance and sale techniques. Some training is geared toward preparing brokers to take required licensing exams. Initially, brokers are provided with a salary or a draw against commissions, but once licensed, most compensation is based on commissions. To be successful, brokers must have excellent communications and research skills.
Where Employed: openings for brokers are plentiful. Many trainees are hired by well-recognized national firms that provide organizedtraining programs. Licensed brokers work for a variety of large and small firm that are located nationwide. Finally, some brokers open their own firms.

CAREER PROFILE
SECURITIES TRADE

Job Description: Securities traders buy and sell securities for their own account and for others. They often work as dealers or market-makers, and play a crucial role in the function of many securities markets. Traders specialize in various types of securities such as equities and bonds, derivatives and currencies. Many traders are self-employed, but may also find employment with banks and securities firms.
Job Requirements: Trading on an exchange is a demanding, stressful position. Traders must have considerable knowledge of a firm's fundamentals before taking a position in that firm's securities. In addition, they must also make quick decisions in a chaotic environment and detect reasons for the movement in the price of a security. Since taking a position involves considerable risk, this occupation is not for the fainthearted. Few trainee positions are available for traders and many begin with internship experience or as a clerk. Successful traders are allowed higher trading limits and may eventually be promoted to manager of the trading department.
Where Employed: Many traders conduct business at organized exchanges for securities such as stocks and bonds, and derivatives such as futures and options. Traders, as noted above may trade for their own account or may be engaged to trade for others such as securities firms.
 


CAREER PROFILE
FIXED-INCOME MANAGER

Job Description: Fixed-income managers are responsible for managing a portfolio of fixed-income securities. Fund managers must monitor the performance of their portfolios and anticipate trends in the economy, especially those that lead to changes in interest rates. It is also essential that fixed-income managers assess the riskiness of their portfolios. Moreover, fixed-income managers must also make decisions about hedging their portfolios to protect against interest-rate and exchange-rate risk.
Job Requirements: This position requires extensive knowledge of securities such as bonds, mortgage instruments, and preferred stock. Many managers have attained the CFA certification. Besides analytical skills needed to evaluate securities, successful fixed-income managers must also understand how factors such as monetary policy affect their investments. Finally, superior presentation and communications skills are often required.
Where Employed: Fixed-income managers are employed by a variety of firms. These may be financialfirms such as insurance companies, mutual funds, and commercial banks. They are also employed by pension plans and securitiesfirms.

CAREER PROFILE
ASSOCIATE: VENTURE CAPITAL FIRM

Job Description: Venture capital firms pool money from investors to lend to a variety of firms that may have experienced difficulty obtaining funds through other sources. Many venture capital firms specialize in a particular industry. For example, many venture capital firms recently arose to secure financing for the biotechnology industry. Biotech firms are likely to be too small to access capital markets directly and too risky to obtain financing from commercial banks. Associates of venture capital firms work along with partners obtaining and analyzing information about prospective clients to be presented to potential investors. Seeking good deals and closing them is an important function of venture capitalists.
Job Requirements: Most associates have obtained an MBA in Finance and have experience in the industry in which the venture capital firm specializes. Most firms promote associates to partners in approximately five years. Entry-level associates salaries are often high, and partners share the firm's profits. However, the work is long and hard and successful candidates should have the temperament of an entrepreneur.
Where Employed: Venture capital firms are likely to be small, and large in number. Given their small size, they do not often hire inexperienced staff unless he/she is a recent graduate from a top business school with some prior work experience. These firms are likely to be clustered around large cities and in emerging "high-tech" areas such as Silicon Valley and Route 128 in Massachusetts.

CAREER PROFILE
INVESTMENT BANKING/UNDERWRITING

Job Description: Investment bankers provide assistance to organizations that wish to raise funds in primary markets. Senior executives may be responsible for developing contacts with these organizations to "land the deal". After the contract is signed, significant research about the industry of the issuing company must be conducted. In addition, economic and financial market conditions must be assessed. The purpose of this research is to ensure that the security issue is properly priced. This function is critical since the underwriter often purchases unsold issues and thus assumes great risk. Entry-level employees are often assigned to an analyst training program for approximately two years. Upon completion, successful employees become associates in departments such as trading, security analysis, and mergers and acquisitions. Particularly successful investment bankers strive to become a partner of the firm.
Job Requirements: Competition for entry-level analyst trainee positions is intense and usually only the best students from prestigious institutions are selected. Although college seniors are considered, many successful applicants hold advanced degrees. Junior analysts must work long hours in a pressure-packed environment to be considered for an associate position. Entry-level positions often involve rotation among the various departments of the firm and require that trainees be adaptable and learn quickly.
Where Employed: Nearly all entry-level positions in the United States are on Wall Street where nearly
all of the major investment banks in the U.S.are headquartered. Additional firms are headquartered in other major financial centers such as London and Tokyo. Althoughsome positions may require extensive travel, "home base" is unlikely to be outside of NewYork unless employment is found with a smaller, regional investment bank.

CAREER PROFILE
COMMERCIAL BANK LOAN OFFICER

Job Description: Commercial banks employ loan officers to collect and evaluate information regarding a client's application for a loan. Many loan officers working for larger banks specialize in an industry such as computer manufacturing or chemical processing. These specialists develop considerable knowledge about these industries that enables them to evaluate loan applications for technical projects. Much of this knowledge is obtained by working closely with the client on a long term basis. Loan officers must also evaluate the information and reports prepared by credit analysts to decide whether credit should be extended.
Job Requirements: Loan officers begin their careers in much the same way as credit analysts who were profiled on page 140. Recent graduates enter a management training program that involves them in many bank functions. The decision to specialize in lending is made on the basis of the bank's needs and/or the interests of the trainee. Skills required for a successful career are similar to those noted for the credit analyst. These include analytical ability, working well with clients, and decision-making ability.
Where Employed: Loan officers are employed by nearly all depository institutions, including commercial
banks. Training programs are more likely to be found in larger banks. Smaller institutions are more likely to hire experienced loan officers.

CAREER PROFILE
RISK MANAGER/HEDGING

Job Description: Risk managers are responsible for protecting organizations from losses associated with interest-rate and exchange-rate fluctuations. Risk managers may also be responsible for developing strategies to deal with commodity price fluctuations.
Job Requirements: Risk hedgers must understand financial theory to be able to measure risk exposure and consider methods to manage it. They also must have excellent analytical and quantitative skills. Since derivatives are widely used to hedge against risk, experience dealing with options, futures, swaps, and forward contracts is essential. Most risk managers have earned an M.B.A., and many possess a Ph.D. in fields such as finance, economics, and mathematics.
Where Employed: Successful financial engineers have developed many products that meet the needs of avariety of organizations. In addition, competition in derivatives markets has lowered the cost of many contracts. These factors have given both large and small businesses several risk managementalternatives. Although the financial services industry is the largest employer of hedgers, many are also employed by manufacturers. This is especially true for foreign-exchange risk hedgers who have beenin demand as international business expands.

CAREER PROFILE
BANK EXAMINER

Job Description: Bank examiners are responsible for auditing the financial statements and practices of banks to determine whether regulatory requirements have been met. Examiners periodically assess the riskiness of a bank's asset portfolio and assign ratings based on the results. In addition, examiners will also determine whether the bank is sufficiently capitalized, given the nature of its assets.
Job Requirements: Entry-level examiners hold degrees in many fields, although many are in business-related areas. Besides a sound understanding of appropriate banking laws and regulations, examiners must be familiar with bank accounting practices. A knowledge of computerized accounting systems is also necessary. Many regulatory agencies provide on-the-job training in these matters. Since most examinations are on-site, frequent travel is often required. Communications skills are also required since examiners work frequently with bank personnel.
Where Employed: Most examiners are employed by federal and state regulatory agencies. Federal agenciesinclude the Federal Reserve, Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency. States thatcharter banks also employ examiners. More recently, people with these skills have found employment with the Resolution TrustCorporation, but this agency is scheduled to be disbanded by 1995.

CAREER PROFILE
FOREIGN CURRENCY TRADER

Job Description: Foreign exchange traders develop and execute strategies for profiting from anticipated changes in exchange rates. Traders may select a long or short position in a currency based on his/her prediction of the future change in the value of that currency. These predictions must be based on fundamentals (i.e., relative interest rates, inflation rates, GDP, etc . . . . ) and technical factors such as recent changes in the markets. Moreover, the trader must also be aware of occurrences in other markets and be able to anticipate the moves to be made by other traders. Finally, traders may also execute trades for their customers rather than for their own account.
Job Requirements: Although some firms offer trainee positions that last approximately one year, many traders learn the ropes by starting as a clerk in the trading department. Candidates for trainee positions most likely have undergraduate degrees in areas such as economics, business, or international affairs. Knowledge of international economics and politics is important. Traders operate on their own and receive all the credit or blame for their performance. The position is often stressful and requires nerves of steel.
Where Employed: Most foreign currency traders are employed by large commercial banks such as the "money
center" or the "superregional" institutions. These are also the firms that are more likely to offer training programs. Many traders are also employed by securities firms and other financial institutions and by large, nonfinancial corporations that havesignificant international exposure.

CAREER PROFILE
FINANCIAL JOURNALIST

Job Description: Financial journalists report on current events and issues in finance. These journalists write short pieces about daily market events and explore issues and trends in finance in feature pieces. Many spend considerable time researching stories that will interest the public. This involves not only using data bases and library collections, but also speaking with members of the business community and academia. Many journalists are under pressure to write several articles each week and of ten do so under the pressure of deadlines.
Job Requirements: This position requires a combination of several skills. Obviously, strong writing skills and the ability to inform the public about technical issues are essential. Also, financial journalists must develop long-term relationships and contacts to quickly gather accurate information about emerging issues and events. These relationships are more easily developed when the writer has considerable knowledge about the field and the issues involved. In addition, the ability to research issues is often necessary to write feature articles. Finally, financial journalists must work well under pressure and be capable of meeting deadlines.
Where Employed: Many general-readership newspapers and magazines have expanded their coverage of business topics lately. This has resulted in a need for experienced financial journalists. Many financial writers are also employed by traditional business newspapers andmagazines. Many writers are freelance
journalists who sell individual stories to many publications. Finally, some television and radio stations (especially those with business-oriented broadcasts) have employed broadcast journalists with strong businessbackgrounds and contacts.

CAREER PROFILE
FINANCIAL ECONOMIST

Job Description: Financial economists study the structure and performance of financial markets to measure factors such as efficiency and stability. Many financial economists also study the effects of government regulations and proposed changes in regulation. In addition, many are now employed as financial engineers developing new products and services that meet the needs (especially hedging) of client firms.
Job Requirements: Many financial economists have earned advanced degrees in either finance or economics. However, many successful financial engineers have training in the natural sciences or mathematics. Necessary skills include a firm grounding in both micro- and macroeconomic theory, quantitative and statistical skills, and computer expertise. Many financial economists must also communicate complex information to a variety of audiences.
Where Employed: Financial economists may find employment in many types of organizations. Many teach in colleges and universities, where they also conduct research. Securities firms employ financial engineers to develop new productsand services for their clients. The Federal Reserve, banks, and various regulatory agencies employ them to research the impact of changes in financial markets andregulation. Many are also employed by othergovernment agencies to assess the impact of policies on financial markets.

CAREER PROFILE
FINANCIAL ENGINEER

Job Description: Financial engineers work with sophisticated financial models and the latest computer technology to develop new financial products and trading strategies to suit the needs of their clients. These needs range from hedging risk to profitable investment strategies. Guided by the latest advances in financial and mathematical theory and enabled by technology, financial engineers solve complex problems for their clients and simultaneously develop the field of finance. Financial engineers may also be employed by corporations to hedge a variety of risks.
Job Requirements: Financial engineers are experts in finance, economics, or mathematics. Many of them have earned a Ph.D. in one of these fields, and they often have taught at the university level. Recently, brilliant scientists have been attracted by Wall Street firms to develop new frontiers. These researchers are lured by astronomical compensation and the opportunity to conduct research that may have obvious practical application. Corporations employing financial engineers to design hedging strategies may hire finance MBAs with exposure or coursework in the field.
Where Employed: Financial engineers are most likely employed by the major securities firms on Wall Street or start their own companies. Many products derived by financial engineers were developed as a by-product of academic research. However, greater use of financial engineeringby many types of firms has increased the demand for trained personnel. Recently, several universities have begun degree
programs in financial engineering and a professional organization has been started.


Last updated: February 10, 2002
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