Career Possibilities

Corporate Investment Banker

Job Description
Corporate investment bankers provide a range of financial services to companies, institutions and
governments. They manage corporate, strategic and financial opportunities, including:

 mergers;
 acquisitions;
 bonds and shares;
 lending;
 privatisations;
 initial public offerings (IPOs).
Corporate investment bankers also advise and lead management buyouts, raise capital, provide
strategic advice to clients, and identify and secure new deals.

Many investment banks deal in three main areas:

 mergers and acquisitions: assisting clients with expansion to increase profitability, safeguard
market position, diversify, and so on. Corporate investment bankers manage the transaction
process, assessing the target organisation and the impact of the deal. This involves knowledge of
legal and regulatory issues, in addition to sound financial knowledge and an in-depth
understanding of the client's industry;
 debt capital markets: working with lenders such as financial institutions, agencies and public and
private companies in order to design and restructure debt obligations;
 equity capital markets: advising clients on how much capital to raise, from where and when,
through research and analysis of products and markets.

Typical work activities

The main role of a corporate investment banker is to advise companies, institutions and governments
on how to achieve their financial goals and implement long and short-term financial plans.

Corporate investment bankers work in dedicated teams, focusing on specific transactions or market
sectors. They also work alongside other related professionals such as lawyers and accountants. A
typical corporate finance deal involves two stages:

 Origination: assessing a deal's desirability, which is sometimes an innovative idea from the
bank rather than the client. Financial models are used to simulate possible outcomes. This
requires a deep understanding of a sector.
 Execution: structuring and negotiating the detailed terms of a deal, often in liaison with other
professionals.
Although dealing with different, specific business areas, project teams liaise with one another during
the two phases of a deal in order to obtain relevant specialist information and market intelligence.

Typical activities on a day-to-day basis include:

 thoroughly researching market conditions and developments;
 identifying new business opportunities;
 carrying out financial modelling, then developing and presenting appropriate financial solutions to
clients;
 liaising with the chief executive and chief finance officers of large organisations;
 co-ordinating teams of professionals, including accountants, lawyers and PR consultants and
working closely with them.

Salary and Conditions

 The average starting salary is around £35,000 to £40,000.
 After three or more years, salaries may range upwards or around £50,000.
 Those with significant experience may earn a base salary of around £150,000.
 Pay is often performance related and bonuses can sometimes be four times the base salary, or
more. The environment is strongly meritocratic.
 Hours are regularly long and often unsocial. Weekend work is common as deals approach crucial
stages. Fifteen hour days are not unusual and investment bankers work up to 100 hour weeks.
 Investment banks are increasingly keen to attract a diverse workforce. Most have internal support
networks for under-represented groups. A number of banks are members of the Diversity
Champions programme from Stonewall .
 The working environment can be extremely stressful as high expectations for targets are set. The
industry is also strongly connected to the economy, and job availability and the amount of job
losses fluctuate depending on how healthy the economy is.
 The main financial centres are New York and London, followed by major European cities such as
Frankfurt and Paris. UK-based positions are almost exclusively in London.
 Many investment banks have global offices and offer trainees the chance to work overseas within
the first two years. Once qualified, investment bankers may spend significant time working
overseas.

Entry Requirements
Investment banks are interested in graduates from all disciplines, not just those with finance-related
degrees.

Standards are high and companies usually ask for at least a 2:1 degree with a strong, consistent,
academic performance. They often specify a minimum number of UCAS points.

Entry without a degree is not usually possible.

Selection is competency based. Candidates are assessed on their ability to demonstrate a range of
the skills considered desirable by the sector. These include:

 proven strong numerical and analytical skills;

 excellent teamworking and team leadership skills;
 communication and interpersonal skills;
 project and time management;
 dedication, energy and commitment;
 self confidence and ability to make difficult decisions;
 the ability to work under pressure and to cope well with stressful situations.
Employers also look for commercial awareness and knowledge of financial markets. A second
language may be useful, but is not essential.

The recruitment process normally has several tiers:

 an online application form;

 numerical and verbal reasoning tests;
 first interview/assessment centre;
 final interviews.
Competition for positions is fierce, so preparation and planning are essential if you want to succeed at
each of these stages.

Completing a pre-internship and/or an internship with an investment bank is a valuable way to

improve your chances of securing a job. Most investment banks offer some of their interns full-time
positions. The application process is similar to that of graduate schemes. Internships are normally
open to penultimate-year students.

Experience gained in back office functions within an investment bank also demonstrates a long term
commitment to working within the investment banking environment.

Part-time work or holiday work within your chosen organisation can also be very valuable especially at
selection stage when employers are looking for ways to differentiate between the candidates.

Some investment banks accept applications from students who require a work permit. You should
check with the individual organisation.

Many of the investment banks have a strong presence on university campuses, posting vacancies
through careers service bulletins and websites, holding presentations and attending recruitment fairs.
Details and dates may be found on company and careers service websites.

Some organisations expect candidates to find out about them and research the opportunities
available and as such do not advertise heavily.
Investment Analyst
Job Description
An investment analyst undertakes research to provide information and investment ideas to fund
managers. The information they provide enables fund managers to make decisions relating to the
investment portfolios they manage.

Some analysts work for investment management companies, providing information to in-house fund
managers; others work for stockbrokers and investment banks, where their research assists portfolio
managers or the employer's clients if they are making their own investment decisions.

Analysts and fund managers working in the UK are likely to research investments globally. Principal
types of investor in the UK include:

 wealthy individuals
 pension funds;
 life assurance companies;
 charitable organisations
 banks and large corporations;
 companies or individuals seeking alternative investments such as real estate and hedge funds.

Typical work activities

Investment analysts may be involved in a broad range of activities and disciplines, which vary
according to the nature of the employer. Essentially they provide an insight on economic trends and
evaluate investment potential. They need to develop an understanding of financial information, such
as financial statements, company accounts, and sector data. They will also need to access and
understand wider business information such as relevant economic data and political events.

Investment analysts are skilled at examining and interpreting data from different sources and
understanding the impact this will have for investment decision making.

An analyst will need to research a set of companies in depth in order to make informed
recommendations to fund managers. These are usually companies in a specific industrial sector, such
as retail, pharmaceuticals or utilities, or in a specific geographical area, such as Europe or East Asia.

Work activities usually include:

 conducting due diligence on companies and industries by researching, reading financial

statements and market data;
 analysing financial information relating to specific companies, e.g. company results, profit and
loss, balance sheet and cash flow statements to determine how an organisation is positioned to
deliver for investors;
 keeping up to date with market developments, new investment products and all other areas that
can affect the markets, e.g. movements in the economies of relevant countries;
 considering how the economic implications of factors such as natural disasters, weather, wars,
etc. might affect the performance of companies and funds;
 monitoring the financial news using specialist media sources;
 financial modelling and projection;
 drafting and writing research reports for fund manager or client use;
 meeting with and providing information to fund managers; this might include, summaries of
research, investment ideas, key events from the proceeding day as well as key drivers for the
day ahead;
 making recommendations to fund managers, being able to position ideas and articulate to the
fund manager about the risk or payoff for each recommendation;
 ensuring that all compliance regulations are met.

Salary and Conditions

 Typical starting salary for entry-level graduate positions is £28,000 - £40,000 in London, with
possible bonuses of 10% - 100% in the first three years. Salaries tend to be lower elsewhere in
the UK (and outside of the larger investment banks). Organisations outside of London may recruit
at an entry level from £18,000 - £20,000.
 After five to eight years, salaries rise to £65,000 - £100,000, with bonuses of up to 40% - 150%.
Typical salaries at senior levels can be £110,000+, with bonuses of up to 200% of salary.
 Salaries vary significantly according to the nature and size of the company and the geographical
location. Salaries (and certainly bonuses) are likely to be higher in investment banks which are
predominantly located in London.
 Starting packages with the bigger companies may include annual bonuses, gym membership, life
assurance, a pension scheme and private health care. Most organisations provide study support
and many now offer flexible benefits packages.
 Working hours can be long, e.g. 10 or 11 hour days and the day tends to start early, as analysts
have to update other departments before the day starts. Some weekend working may be
necessary from time to time. The work is primarily office based, with some visits to companies to
meet with management.
 Working within a team of analysts is common. Initially you will support the lead analyst and it may
take several years before you cover companies yourself.
 The majority of openings are in London, especially for roles based within an investment bank.
Investment management companies and stockbrokers are based in other UK cities as well as
London. Few jobs are found outside major cities.
 Business dress is usual particularly in investment banks. Some firms have adopted a more smart
casual dress code.
 Meeting deadlines and long working hours may be stressful. There is often a need to work to
very tight deadlines, any trading issues need to be resolved extremely quickly and this may lead
to pressured working environments.
 Travel is sometimes required to visit company management teams, which are usually UK-based,
but overseas travel is also a possibility. Larger, global firms offer opportunities to work abroad.

Entry Requirements
Although this area of work is open to all graduates, for some organisations a degree in one of the
following subjects is a strong preference:

 mathematics;
 statistics;
 economics;
 accounting.
Knowledge of other degree subjects may also be relevant, depending on your area of research; for
example, life sciences will be relevant to work in pharmaceuticals.

Most employers seek a 2:1 or a first but investment banks may actually be more flexible about degree
discipline than some investment management companies. Most will also require a minimum of 300
UCAS points at A-level (or equivalent). Some employers are specifying that applicants should have a
grade A or B at A level mathematics.

Postgraduate qualifications are not essential, although a relevant Masters can help. Humanities
students in particular may well find that a relevant Masters degree is helpful for some roles.

Pre-entry experience, such as work experience or an internship in a financial institution or a finance

specific industry, is highly beneficial. Most financial companies use summer internships to pre-select
graduate recruits. Competition for these is often more intense than for graduate vacancies, as there
are fewer placements. London-based companies recruit across Europe and competition is high. Any
financially based work experience will be extremely useful for the application process.

At a graduate level, employers will often make selection based on competencies rather than look for
specific experience. Candidates will need to show evidence of the following for entry to graduate level
roles:

 the ability to research, analyse and evaluate;

 excellent interpersonal and written/oral communication skills;
 the ability to work under pressure, meet deadlines and multi-task in a fast paced environment;
 strong numerical ability and quantitative skills;
 self-confidence, drive and tenacity;
 the ability to work effectively in a team;
 initiative, flexibility and innovation;
 an interest in current affairs and an appreciation of their impact on the market;
 in depth investment knowledge; this may come from an interest in the markets, participation in
relevant student societies or running a shadow portfolio;
 commitment to further study and qualifications;
 global mind-set.
Computer literacy is essential although some IT skills can be acquired during training. Excel is
particularly important as roles often involve financial modelling and projection work. Investment
analysts will be expected to use Bloomberg, Reuters and other financial information platforms.
Language skills may also be an advantage and for global organisations applicants should be able to
demonstrate a global mind-set.

Closing dates for entry to graduate schemes at investment banks, stockbrokers and investment
management companies may be as early as the October of your final year and rarely later than the
following January. Applicants should check with each employer website individually. Entry to all of
these graduate schemes is highly competitive. Some companies, particularly the big investment
banks, run structured graduate training programmes and recruit to them annually. Others may offer
trainee positions as and when they are required.
Financial Trader
Job Description
Financial traders buy and sell shares, bonds and assets for investors, including individuals and banks.
They make prices and execute trades, seeking to maximise assets or minimise financial risk.

There are three types of trader:

 Flow traders - buy and sell products on the financial markets for the bank's clients. Products
include securities and other assets such as futures, options and commodities.
 Proprietary traders - trade on behalf of the bank itself.
 Sales traders - take instructions directly from clients, placing orders and advising them on
market developments and new financial ventures. They are intermediaries between the client and
the market maker.
Traders may specialise in a particular product, such as shares, fixed-interest bonds or foreign
exchange (FX) markets.

Typical work activities

While there are many similarities in the work of flow and proprietary traders and those working in
sales, their roles differ substantially. The main difference is risk - sales traders do not take risk while
flow/proprietary traders take risks seeking reward.

Work activities of a flow or proprietary trader typically include:

 speaking with colleagues, making phone calls and making instant decisions;
 making prices in their relevant products;
 executing trades electronically or by phone;
 liaising with sales traders/clients on market movements;
 predicting how markets will move and buying and selling accordingly (especially derivatives
traders who try to predict the state of a market at a future date);
 informing all relevant parties of the most relevant trades for the day;
 gathering information - critically about mispriced assets, detailed data analysis and valuation.
Traders in sales are more focused on the relationships with clients. They analyse and market new
financial offers that they believe will be attractive to their clients.

The day-to-day activities of a sales trader may include:

 gathering information and analysing the market;

 carrying out detailed data analysis and valuation;
 proving in-depth market reports;
 identifying issues affecting clients;
 developing client relationships and presenting ideas to clients;
 executing trades and securing deals with new clients;
 keeping market-making traders informed of relevant issues with their customers and products;
 obtaining market prices from market-making traders and executing the trade.
Salary and Conditions
 Typical basic starting salaries for trainee financial traders can range from around £26,000 to
£32,000, plus commission.
 The range of typical salaries for experienced traders is between £45,000 and £150,000+.
 An associate trader with experience selling credits could earn around £140,000 in a top-tier bank
or £230,000 if they work in more lucrative derivatives.
 Very high earnings are possible, especially for proprietary traders, who are often paid a bonus
equivalent to a proportion of the profits made. However, EU regulations, which came into force in
2014, limit bonuses in banking to no more than 200% of salary.
 Additional benefits, such as non-contributory pension schemes and mortgage subsidies, are
common.
 With experience, working hours are typically 7am to 6.30pm but may be considerably longer for
newcomers. FX (foreign exchange) is 6.30am to 5pm. Oil can be 8am to 6.30pm or 9.30am to
8pm.
 The work is office based and the vast majority of opportunities are in London.
 Self-employment or freelance work is unusual without years of experience.
 Part-time work is not feasible, although job sharing is possible and career breaks are becoming
more common.
 The work is demanding and trading can be hectic. Managing large amounts of other people's
money is not a career for the faint-hearted.
 Overseas travel is occasionally required and, depending on the client base, is likely at least once
a month for traders in sales.

Entry Requirements
Although this area of work is open to all graduates, a degree in the following subjects may increase
your chances:

 economics;
 accountancy;
 politics;
 maths;
 business;
 sciences;
 finance.
Entry standards are high, usually requiring a minimum 2:1 degree, and the selection process is
demanding. An assessment may include interviews and psychometric tests, sometimes all in one day.

Foreign language skills are an advantage as banks are expanding globally, not just in Europe but also
in Asia and Latin America.

Entry without a degree or HND is difficult, although it may be possible to enter the industry in
administrative roles, make contacts, and eventually move into trader positions.

Pre-entry experience is not needed but vacation work/internships/placements will give you an
advantage. For further information see individual company websites ortopinternships.com .
Candidates need to show evidence of the following:
 strong numeracy skills;
 excellent communication and interpersonal skills;
 teamworking ability;
 physical and mental stamina;
 independent thinking;
 an interest in finance and the financial markets;
 integrity;
 alertness and decisiveness under pressure;
 ability to accept responsibility.
Networking and following up contacts can be useful in finding jobs. Check with your university careers
service for a list of past students working in the industry who are happy to be contacted. Ask your
family, friends and associates to see if anyone can put you in touch with someone working in the field.

Competition for entry is intense. Generally, vacancies are limited and the entry standards are
consistently high. Not all jobs may be advertised so it is advisable to write speculative applications,
expressing your interest and your suitability should a post arise, and enclose an informative, targeted
CV.

Persistence is essential. You must be able to promote yourself effectively and give evidence of the
reasons you believe you will be successful in this career. Read the financial press, attend
presentations and do thorough research about potential employers and the opportunities they offer.

Major investment banks recruit graduate trainees and offer internships or work experience; some offer
'insight' days for first-year students. Closing dates are normally in late October and early November
for opportunities starting in the following summer or autumn. Banks may start to fill positions once
applications open so you are strongly advised to apply early.
Financial Risk Analyst
Job Description
Financial risk analysts identify and analyse the areas of potential risk threatening the assets, earning
capacity or success of organisations in the industrial, commercial or public sector. They are
sometimes called risk managers, risk technicians or risk surveyors. They have the responsibility
of forecasting cost to the organisation and predicting change and future trends.
There are high degrees of specialisation within the profession. Risk analysts may work in sales,
origination, trading, marketing, financial services or private banking, specialising in:

 credit;
 market;
 operational;
 regulatory.
Financial institutions are required to manage market and credit risks daily. Risk analysts are therefore
increasingly tasked with responsibilities touching all four key areas.

An alternative but similar role to financial risk analyst is that of the credit analyst in which the
creditworthiness of a business is calculated and a probability of payment determined. Risk analysis is
considered by many to be advanced credit analysis.

Typical work activities

A financial risk analyst's role is to formalise the process of risk management within an organisation.
This involves business decision-making and enabling the process of risk taking.

 Credit risk specialists analyse the risk to the company of its customers not paying for goods or
services or defaulting on loans.
 Market risk specialists analyse the risk that outside factors may affect the share price or the
market. They typically work closely with traders to calculate the risk associated with specific
trading transactions.
 Operational risk analysts look at the likelihood of risky events, such as system breakdowns and
employee fraud.
 Regulatory risk analysts look at the impact on the company of new legislation.
Work activities depend on the nature and business of the employer, but tasks typically involve:

 managing resources wisely;

 considering proposed business decisions;
 protecting the organisation's assets and public image;
 conducting research to assess the severity of risk;
 conducting statistical analysis to evaluate risk and using statistical software such as SPSS and
SAS;
 making recommendations to reduce/control risk, which may involve an insurance strategy;
 reviewing legal documents;
 presenting ideas via reports and presentations, outlining findings and making recommendations
for improvements;
 working with traders to calculate the risk associated with specific transactions;
 liaising with underwriters and insurers;
 forecasting and monitoring market trends;
 purchasing insurance;
 analysing a bank's market position and running figures through complex modelling techniques to
find value at risk (VAR) measurements;
 carrying out quantitative analysis;
 using financial packages and software, including portfolio management software;
 studying government legislation, which may affect a company, and advising on compliance;
 developing contingency plans to deal with emergencies.

Salary and Conditions

 Typical starting salaries for risk technicians are around £21,250 plus potential bonuses.
 Salaries at risk analyst level, with up to six years' experience, are between £29,000 and £44,000
plus potential bonuses.
 Risk managers can expect to earn in the region of £46,500 to £74,000 plus potential bonuses.
 Salary levels depend on the size and type of the organisation. Most organisations also offer
benefits packages.
 Working hours typically include regular extra hours, although not weekends or shifts.
 The work is mainly office based, but may involve visiting various other organisations.
 Self-employment/freelance work is a viable option on a consultancy basis, although considerable
experience and expertise are required.
 Opportunities tend to be in large towns and cities.
 The job involves working under pressure to meet deadlines.
 Travel within a working day is frequently necessary and absence from home overnight is
occasionally required.
 There may be opportunities to work overseas, particularly if you are employed by a large
international company.

Entry Requirements
Although this area of work is open to all graduates and diplomates, a degree or HND in the following
subjects may increase your chances:

 finance;
 insurance;
 mathematics;
 statistics;
 accountancy;
 legal studies;
 business studies;
 management;
 risk management;
 economics;
 engineering.
Employers are increasingly looking for degrees in finance, mathematics or statistics. Specific degrees
relating to financial risk management are available, including:

 BSc Finance, Investment and Risk, ifs University College;

 BSc Investment and Financial Risk Management, City University London;
 BSc Risk Management, Glasgow Caledonian University.
Entry without a degree or HND may be possible, but larger employers do prefer graduates. Without a
degree, experience in finance or insurance is usually required, along with professional qualifications.

A postgraduate qualification, such as an MSc in financial-related risk management or financial

markets, can also significantly improve your employment prospects, particularly for candidates with an
unrelated undergraduate degree.

Entry is also possible through graduate training programmes, especially in many of the larger finance
organisations. Specific risk management training is sometimes included in these programmes.

Pre-entry commercial experience can be an asset.

Candidates will need to show evidence of the following:

 strong numeracy, analytical and strategy skills;

 good research skills;
 planning/organisational skills and problem-solving ability;
 IT competence/computer literacy;
 negotiation skills;
 written and oral communication skills;
 the ability to explain complex issues and present technical information clearly;
 commercial awareness;
 the ability to work independently and to cope with pressure and responsibility;
 a professional approach to work, integrity and respect for ethics;
 the confidence to relate to a wide range of people and to challenge people when necessary.
Competition for jobs is usually intense. The role of financial risk analyst has grown significantly in
recent years and involves the management of increasingly complex financial products. Enhanced
regulations and a more risk-conscious banking sector, means organisations are investing more
heavily in their risk functions, creating more jobs in this area.
Risk Manager
Job Description
Risk managers advise organisations on any potential risks to the profitability or existence of the
company. They identify and assess threats, put plans in place for if things go wrong and decide how
to avoid, reduce or transfer risks.

Risk managers are responsible for managing the risk to the organisation, its employees, customers,
reputation, assets and interests of stakeholders. They may work in a variety of sectors and may
specialise in a number of areas including:

 enterprise risk;
 corporate governance;
 regulatory and operational risk;
 business continuity;
 information and security risk;
 technology risk;
 market and credit risk.

Typical work activities

Specific tasks depend on the industry in which you are working, how specialised your role is and the
level at which you are working. However, key activities may include:

 planning, designing and implementing an overall risk management process for the organisation;
 risk assessment, which involves analysing risks as well as identifying, describing and estimating
the risks affecting the business;
 risk evaluation, which involves comparing estimated risks with criteria established by the
organisation such as costs, legal requirements and environmental factors, and evaluating the
organisation's previous handling of risks;
 establishing and quantifying the organisation's 'risk appetite', i.e. the level of risk they are
prepared to accept;
 risk reporting in an appropriate way for different audiences, for example, to the board of directors
so they understand the most significant risks, to business heads to ensure they are aware of
risks relevant to their parts of the business and to individuals to understand their accountability
for individual risks;
 corporate governance involving external risk reporting to stakeholders;
 carrying out processes such as purchasing insurance, implementing health and safety measures
and making business continuity plans to limit risks and prepare for if things go wrong;
 conducting audits of policy and compliance to standards, including liaison with internal and
external auditors;
 providing support, education and training to staff to build risk awareness within the organisation.

Salary and Conditions

 Risk manager is not an entry-level role. Typical starting salaries for those starting in a risk
technician role are around £21,250.
 Risk analysts with between one and six years' experience can earn from £29,000 to £44,000.
 With several years' experience at risk manager level, salaries can range from £46,500 to
£74,000. With substantial experience at director level it is possible to earn £70,000 or more.
 Salaries vary widely depending on the sector, level of responsibility and location. The highest
salaries are found in financial sectors and in positions based in London.
 The working hours are typically 9am to 5pm, Monday to Friday. Additional hours can be expected
at more senior levels.
 Work is primarily office based but often includes visits to other offices to see clients (if working in
consultancy) or to sites (if working in sectors such as construction or energy). At a more senior
level, time may be spent away from the office at conferences.
 There are opportunities for self-employment for experienced risk managers who want to set up
their own consultancy. Part-time work and career breaks are possible and are more likely in
larger organisations.
 Risk management jobs are available across the UK.
 Work in risk management can carry personal liability, in particular with relation to the health and
safety elements of risk work.
 Travel within the working day is common, but this depends on the size of the organisation and
your level of responsibility.
 Overseas travel may be required if you are working for a company that operates internationally.

Entry Requirements
Although this area of work is open to all graduates, a degree in the following subjects may increase
your chances:

 risk management;
 finance or economics;
 science;
 statistics;
 engineering;
 law;
 management or business studies.
Graduates of risk management courses and courses with risk management content are sought after
and targeted by recruiters of risk managers.

Students on risk management degree and postgraduate courses are able to apply for free student
membership of the Institute of Risk Management (IRM) , which can help with job prospects. See the
IRM website for details of the different levels of membership available.
Postgraduate qualifications are not essential but can be advantageous. A Masters in risk
management is available at a number of universities and may be particularly relevant for those who
have not completed a risk management-related degree.

Entry without a degree is possible, but it would usually entail a career path through an administrative
role, working up to a risk assistant position and progressing to a risk manager role. Employers would
expect A-levels or equivalent qualifications for entry through this route.
Graduates of less relevant subjects can also take the IRM's International Certificate in Risk
Management to give them an introduction to risk management and increase their chances of getting
an entry-level position.

Candidates need to show evidence of the following:

 technical acumen;
 problem-solving and decision-making abilities;
 analytical skills and a good eye for detail;
 ability to cope under pressure;
 planning and organisation skills;
 negotiation skills and the ability to influence people;
 good communication and presentation skills;
 commercial awareness;
 numerical skills and the ability to evaluate costs;
 ability to understand broad business issues.
At the higher levels, employers look for experience or knowledge of risk management so it may be
useful to get work placements during the holidays if they are not part of your course. This could set
you up with risk and insurance contacts, which could help with future job prospects.

Experience in a particular industry could also be helpful if it relates to the sector in which you wish to
specialise your risk management role.
Actuary
Job Description
Actuaries evaluate, manage and advise on financial risks. They use their knowledge of business and
economics, together with their understanding of probability theory, statistics and investment theory, to
provide strategic, commercial and financial advice.

The core of actuarial work lies within pensions and insurance, where professionals are most likely to
start off; however, later on in your career there are opportunities to move into other emerging fields
such as investment, healthcare and banking.

Actuarial work can be diverse and ranges from highly technical roles developing complex financial
products in investment banks or pensions and insurance companies to consultancy roles for those
seeking a client-facing career.

Actuaries need to apply their mathematical, economic and statistical awareness to real situations in
the financial world and be able to communicate the difficult topics to non-specialists. Strong
communication skills are an essential part of the work, and it is essential that actuaries are able to
discuss complex topics in a simple way to assist their clients effectively.

Actuarial trainees may begin work as trainee pension consultants or risk analysts while at the same
time studying for professional exams. Senior actuaries can be found in consulting firms as partners, in
large banks as chief risk officers or in board-level positions in insurance companies and other
financial services organisations

Typical work activities

Actuaries apply financial and statistical theories to assess the likelihood of a particular event occurring
and the possible financial costs.

Specific tasks vary but work may include:

 analysing statistical data in order to calculate, for example, accident rates for particular groups of
people;
 using mathematical modelling techniques and statistical concepts to determine probability and
assess risks, such as analysing pension scheme liabilities, to price commercial insurance;
 monitoring risk within trading positions in investment banking to ensure excessive risks are not
taken during the fast pace of trading;
 presenting reports, explaining their implications to managers and directors, and advising on risk
limitation;
 advising on issues such as the selection of investment managers or the administration of
pensions and benefits;
 working with IT professionals to develop systems to ensure compliance with the requirements of
regulatory bodies;
 communicating with clients and carrying out relationship management, including with investment
managers, financial directors and external stakeholders;
 supervising staff;
 working with mergers and acquisitions.
Specifically, actuaries in their day-to-day work may be responsible for the following:
 developing new financial products;
 conducting valuations of assets and liabilities;
 advising on investment strategies and assessing the profitability of an investments portfolio;
 calculating funding rates and considering assumptions for pension scheme liabilities;
 analysing risks related to locations for catastrophe claims;
 measuring, monitoring and mitigating portfolio and enterprise risks;
 overseeing asset and liability modelling, product development and profit testing;
 preparing presentations, reports, valuations and quarterly updates.
Actuaries may also be involved with the acceptance of proposals for new policies, with legal and
taxation matters affecting life assurance, or with the investment of funds.

Salary and Conditions

 Starting salaries for graduates generally fall within the range of £25,000 to £35,000. Salaries vary
according to location, and are usually higher in the London area.
 Typical salaries for newly qualified actuaries in insurance companies may vary between £40,000
and £55,000. Salary progression is dependent upon the individual, performance, and the
development of a career path. Increments are usually paid for examination success.
 Salaries at senior level or with 10-15 years of experience are typically more than £60,000. There
is a wide range of salaries for experienced actuaries, but high financial rewards and excellent
benefits packages are common.
 Salaries in excess of £185,000 are typical for senior directors.
 Expect to work overtime, but not necessarily at the weekends or in shifts. In traditional areas of
employment, long hours are less likely for more junior staff, e.g. graduate trainees, as they will be
devoting time to study for professional examinations.
 Self-employment and freelance work are possible but very unusual, as most actuaries are
employed by large financial institutions.
 Flexible and part-time work, as well as career breaks, can be negotiated with some employers,
but this is usually dependent on the employer and individual's circumstances.
 Jobs are quite widely available in most large towns and cities of the UK, although London has the
largest proportion of jobs.
 There are more than 25,000 members of the Institute and Faculty of Actuaries (IFoA), of which
just over half are students. Historically, most actuaries have been male but statistics show that
38% of student members are female (IFoA, 2013).
 Actuaries are usually expected to maintain a smart business dress code but this varies between
employers.
 Examinations are an important part of an actuarial student's training, and study during this period
may impact on your social and personal life.
 Opportunities to travel vary between employers. For example, an insurance company with offices
around the UK or abroad may require actuaries to travel from time to time. Visits to corporate
clients may also be necessary, e.g. for those working in reinsurance. The amount of travel varies
according to the type of actuarial work and the regional area.
Entry Requirements
Although this area of work is open to all graduates with strong numerical skills, the following degree
subjects may increase your chances:

 actuarial science or actuarial mathematics;

 mathematics or statistics;
 economics;
 engineering;
 risk management;
 business or finance;
 science, e.g. physics and chemistry.
The majority of UK entrants to the Institute and Faculty of Actuaries (IFoA) are graduates with a first
or second class honours degree. Graduates must have a minimum of grade B in A-level mathematics
and a grade C in another A-level subject.
Employers typically look for a 2:1 or above, ideally in a numerate subject such as mathematics,
statistics or economics. Eligibility of other qualifications, including those from outside the UK and
Ireland, can be checked with the admissions team at the IFoA. Entry with an HND only is highly
unlikely.

Details of postgraduate diploma and MSc courses in actuarial science accredited by the IFoA are
available at IFoA University Courses and Exemptions . A degree, postgraduate diploma or MSc in
actuarial science may give exemption from core technical subjects and allow qualification in a shorter
time. It is also possible to get exemptions having studied a numerical degree such as mathematics or
economics, provided modules include some focus on statistics and probability. The Directory of
Actuarial Employers has a list of companies that may offer sponsorship for postgraduate study.
Although pre-entry experience is not a requirement, talking to people in the job and, if possible,
acquiring some work experience will prove invaluable. Some companies offer work placements or
internships for students interested in becoming actuaries. Internships and placements can potentially
be helpful in securing a graduate job, however this is dependent on the organisation. It is also useful
to speak with people in the profession by approaching them at careers events or work shadowing
where possible.

Candidates will need to show evidence of the following:

 a high level of numeracy;

 good communication skills, including the ability to convey complex information to clients;
 analytical, research and creative problem-solving skills;
 IT skills;
 the ability to write clear reports;
 the ability to take responsibility;
 excellent people, interpersonal and listening skills;
 strong teamwork ethic;
 self-discipline and determination and an appreciation of the demands of studying while working;
 sound judgement and a genuine interest in business;
 commitment to an actuarial career.
The Certificate in Financial Mathematics (CT1) is offered by the IFoA to non-members such as
university students and people working in financial services. It provides a useful starting point for
those considering a career as an actuary. The exam also goes towards completing the professional
qualification.
Financial Manager
Job Description
A financial manager is responsible for providing financial advice and support to clients and colleagues
to enable them to make sound business decisions.

They may be employed in many different environments including both public and private sector
organisations, such as:

 multinational corporations;
 retailers;
 financial institutions;
 NHS trusts;
 charities;
 manufacturing companies;
 universities;
 and general businesses.
Financial considerations are at the root of all major business decisions. Clear budgetary planning is
essential for both the short and long term, and companies need to know the financial implications of
any decision before proceeding.

In addition, care must be taken to ensure that financial practices are in line with all statutory legislation
and regulations.

Financial managers may also be known as financial analysts or business analysts.

Typical work activities

The roles of financial managers can vary enormously. In larger companies for instance, the role is
more concerned with strategic analysis, while in smaller organisations, a financial manager may be
responsible for the collection and preparation of accounts.

In general, tasks across roles may include:

 providing and interpreting financial information;

 monitoring and interpreting cash flows and predicting future trends;
 analysing change and advising accordingly;
 formulating strategic and long-term business plans;
 researching and reporting on factors influencing business performance;
 analysing competitors and market trends;
 developing financial management mechanisms that minimise financial risk;
 conducting reviews and evaluations for cost-reduction opportunities;
 managing a company's financial accounting, monitoring and reporting systems;
 liaising with auditors to ensure annual monitoring is carried out;
 developing external relationships with appropriate contacts, e.g. auditors, solicitors, bankers and
statutory organisations such as the Inland Revenue;
 producing accurate financial reports to specific deadlines;
 managing budgets;
 arranging new sources of finance for a company's debt facilities;
 supervising staff;
 keeping abreast of changes in financial regulations and legislation.

Salary and Conditions

 Starting salaries are typically in the range of £24,000 and £35,000. Average starting salaries in
the banking and finance sector can be as high as £35,000, rising to £45,000 in the investment
banking sector.
 Typical salaries for newly qualified accountants in public service and not-for-profit agencies are
between £35,000 and £40,000.
 Salaries for experienced financial managers (ten years plus) in commerce and industry can
range from £65,000 to £100,000+. Some companies may pay higher salaries while others offer a
lower basic pay with additional high bonuses.
 Salaries vary widely according to the type, sector, size and location of the employing
organisation. The highest salaries tend to be in London and the surrounding areas. The private
sector, most notably the banking and capital markets sector and particularly organisations based
in the City, pays more than the public sector.
 It is common for employers to provide financial support for professional study, as well as study
leave.
 Working hours are generally from 9am to 5pm, five days a week, with some flexibility possible.
However, longer hours may be required depending on current deadlines and workload. Jobs
within the City in particular can be highly pressured with long working hours. During the early
years of your career, if undertaking professional study, you will need to factor extra working hours
into your official working day.
 Jobs are available in most areas of the country, with the majority being in or near large towns and
cities.
 Self-employment is possible. Finance professionals sometimes work as consultants, but usually
only after gaining significant experience within an organisation.
 Career breaks are possible but, as with any profession, if you are considering re-entry you must
keep up to date with developments.
 Travel for work is likely, particularly if the company operates from a number of different sites, with
overnight stays or periods away from home sometimes required.
 Opportunities to travel and work abroad will depend on the size and nature of the organisation, its
clients or customers, and whether it has overseas sites or international links.

Entry Requirements
Although this area of work is open to all graduates, the following subjects may be particularly helpful
and may entitle you to exemptions from some professional examinations:

 business/management;
 economics;
 accountancy and finance;
 mathematics/statistics.
A relevant postgraduate course may be useful, but is not essential. In certain niche areas, specialised
knowledge gained through a postgraduate programme may give you a competitive advantage.
Graduate schemes in finance and related areas almost always require further study for professional
qualifications.

Entry into the profession is possible with A-levels (or equivalent) or a HND/HNC, generally by
studying with an institutions such as:

 the Association of Chartered Certified Accountants (ACCA)

 The Institute of Financial Accountants (IFA)
You can then proceed to professional accountancy training and work your way up to a management
position. For more information see the Financial & Legal Skills Partnership (FLSP) as well as ACCA
and IFA.
Candidates need to show evidence of the following:

 commercial and business awareness;

 excellent communication and presentation skills;
 an analytical approach to work;
 high numeracy and sound technical skills;
 problem-solving skills and initiative;
 negotiation skills and the ability to influence others;
 strong attention to detail and an investigative nature;
 the ability to balance the demands of work with study commitments;
 good time management skills and the ability to prioritise;
 the ability to work as part of a team and to build strong working relationships;
 the capacity to make quick but rational decisions;
 the potential to lead and motivate others;
 good IT skills.
Relevant work experience can be valuable and there are many opportunities available. Some
employers run vacation placements or short, work experience taster courses. Early application is
advised for these as competition can be strong.

Professional accountancy bodies also produce vacancy publications with details of traineeships.
Many employers offer industrial placement years, which can be taken as part of a sandwich degree.
Your university careers service and course tutors should be able to offer you support with finding
these. It is worth approaching organisations directly for work experience even if they have not
advertised placements.

Gaining membership with a professional organisation is useful as it shows your interest and
commitment to the sector. Registration with professional bodies is open to individuals with A-levels (or
equivalent) or above, such as HND/HNC, so you do not have to wait until you have graduated to join.

A variety of organisations offering finance graduate-training schemes, as well as accountancy

professional bodies, hold presentations on campus and have stands at careers fairs where you can
talk to representatives and recent graduate trainees in order to get an insight into the nature of the
work and tips on what helped them to succeed.

The finance and accountancy sector is influenced by the economic climate and so when there is a
period of economic downturn it will have a detrimental effect on the sector. This can mean that firms
reduce their levels of recruitment and competition for jobs can be fierce. In these situations it may be
useful to consider jobs with smaller accountancy firms and other small to medium-sized enterprises
(SMEs), rather than focusing on the large organisations that offer graduate schemes and attract a lot
of applications.