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