Features of the profession of financial analyst

Now many people are interested in the features of the profession of a financial analyst. The fact is that one of the keys to a successful business is competently compiled financial statistics. This allows us to develop effective strategies in a timely manner and as quickly as possible, including anti-crisis programs. Taking into account the current specifics of the modern market economy, the overwhelming majority of companies have a position of a financial analyst.

Like any other profession, the described one has its clear advantages, as well as certain disadvantages. In the first case, we are talking about the following important points:

• typically, large companies offer financial analysts competitive salaries;
• the specialty is becoming more and more in demand;
• good prospects in terms of career advancement;
• the opportunity to participate in specialized trainings and seminars, which are often paid by the employer.

The list of rather significant disadvantages is:

• the need to spend a lot of time in a sitting position;
• increased risk of stressful situations;
• high responsibility;
• as a rule, irregular working hours.

A representative of this relatively young profession is a specialist whose duties include assessing the state of an enterprise (firm), securities and, of course, stock markets. He is also responsible for developing the most profitable development paths. The results of the analyst's work are full-fledged recommendations based on in-depth professional analysis. In other words, this specialist must:

• track industry trends;
• collect all necessary financial information and process it;
• correctly assess potential risks;
• analyze reports;
• study the data of management and, of course, accounting;
• make forecasts.

In addition to all of the above, marketing research can be added to the responsibilities of a financial analyst. And also we are often talking about contacts with clients and consulting. Sometimes analysts are responsible for posting information to the media.

In addition to everything already listed, those wishing to master the described profession should be prepared for frequent business trips. Naturally, the performance of these operations requires appropriate training. An equally important point is the analyst's personal qualities, namely:

• accuracy and scrupulousness;
• the ability to process large amounts of information;
• the makings of a leader;
• increased learning ability;
• ability for deep, comprehensive analysis.

At the initial stage, you can get by with a higher education. However, in the future, additional training is indispensable. And in this case we are talking not only about the magistracy. This means attending special courses, seminars and trainings.

The indisputable fact is that the work of a financial analyst is associated with a very great responsibility. Based on this, the corresponding requirements are imposed on the level of training of specialists of this level. And in this case we are talking about such important points as:

• the presence of a solid baggage of theoretical knowledge;
• knowledge of accounting and reporting;
• experience in applying an integrated approach to research (meaning both the entire market and its segments, or a specific object for investment);
• theoretical training, as well as practical skills in technical and fundamental analysis;
• a complete understanding of the mechanisms and all the features of a particular market.

By the way, there are international standards used in assessing the level of professionalism of analysts. As a rule, national communities of specialists are united into large organizations, which are engaged in the development of standards. For example, in Europe, the Federation of Societies of Financial Analysts (EFFAS) is responsible for certification. In parallel, the Asian Federation of Financial Analysts (AFSA) has developed similar standards for countries. They are used to train and qualify future specialists.

Twenty years ago, the international qualification Certified International Investment Analyst - CIIA appeared. It should be noted that at the moment it is the most authoritative in the world. The development of standards in 2000 was carried out by representatives of the previously mentioned European and Asian federations. And we are talking about specialists from 32 countries representing Europe, Asia and Latin America.

A little later, the Association of Certified International Analysts began its activities. From 2001 to the present day, ACIIA certification has been actively implemented almost all over the world. She came to the Russian Federation in 2002.

To be awarded the CIIA category, a candidate will need to successfully pass the national and general exams. Moreover, the latter consists of two stages. By the way, in the Russian Federation the community of professionals is represented by the Guild of Investment and Financial Analysts (GIFA).

The arsenal of a good analyst should include the following categories of knowledge:

• understanding the peculiarities of the influence of various economic factors on the markets, as well as the movement of interest rates, that is, we are talking about general economic knowledge;
• methods of modern analysis and maintaining statistical reports;
• preparation of financial forecasts;
• legislative framework (business law, taxation, etc.);
• accounting principles;
• specifics of specific industries, taking into account the specialization of the company;
• principles and mechanisms of investment;
• assessment of potential risks.

A professional financial analyst certainly does not need to have a higher education in economics. However, it is important to understand that this will only be the first step to a successful career. If there is a competition for the position of an analyst, CFA, IPFM, ACCA and other diplomas will prove to be a significant competitive advantage.

If we talk about the higher educational institutions functioning today, with training in which you can start, then it is worth highlighting the following options:

• Moscow State University;
• MGIMO;
• HSE;
• MESI;
• Russian School of Economics;
• State Institute of Management;
• Plekhanov Russian Academy of Economics;
• Economic branch of NSU (Novosibirsk);
• Financial Academy under the Government of the Russian Federation.

Unfortunately, in practice, a diploma in higher economic education is far from always a guarantee that its holder is able to engage in financial analytics at the appropriate level. In the overwhelming majority of cases, specialists undergo additional training and improve their qualifications, so to speak, on the job. Now, including in the territory of the Russian Federation, they are trying to hire certified analysts. These are the already mentioned CIIA qualifications and the Chartered Financial Analyst degree.

It is important to take into account that the formation of the stock market is currently being observed in the Russian Federation, therefore, the intensification of the development of the relevant institutions. In such conditions, the demand for highly qualified employees is growing exponentially and logically. At the same time, we can only talk about the emergence of such a type of activity as professional financial analysis.

Now many young graduates of economic faculties are interested in the possibility of further education and obtaining a promising specialty.

The described profession appeared relatively recently. And it is worth noting that at the initial stage this specialty was not in record demand. However, today the situation is changing dramatically. And this is confirmed, among other things, by the attractive salaries of certified analysts.

In accordance with numerous forecasts of experts, the popularity of the profession in question will grow steadily in the coming years.

Focusing on the financial side of the issue, it is worth recalling that analysts, as a rule, make good money. However, the salary in this case depends on several key points.

1. Regional affiliation of the company. This means that in large Russian cities the labor of a financial analyst is significantly more expensive.
2. Specialization (field of activity) of the enterprise.
3. The level of training and experience of the specialist himself.And in this case we are talking about both diplomas confirming the passage of specialized training, documents on the assignment of qualifications in accordance with the current standards, and practical skills of analysis.

Even with minimal experience, there is a possibility of successful employment in a large company. Talented analysts, tuned in to constantly develop and improve their qualifications, have every chance to build a successful career in the financial sector.

Taking into account all of the above, we can conclude that the demand for high-quality services of the considered specialists will only increase. There is every reason to believe that the profession of financial and investment analyst has great prospects. This must be taken into account by both graduates of higher educational institutions and already practicing financiers. In the situation with the latter, we are talking primarily about a good opportunity for active promotion up the career ladder.