MBA finance careers are demanding but rewarding.
MBA finance graduates help institutions understand financing needs, evaluate working capital constraints, analyze short- and long-run investment opportunity, and assess internal controls and procedures. They also aid in increasing firms' profits through trading, portfolio management, and short- and long-term risk hedging. These specialists also conduct research and provide advice to firms or clients.
Corporate Finance
Corporate finance specialists analyze firms' operating data, key metrics or indicators and working capital ratios to propose adequate capital structure tools. These specialists use computer programs to evaluate market trends and securities' movements to detect financing opportunities. They help firms raise funds to finance operating needs, short- and long-term investment goals and corporate re-organization initiatives such as mergers or acquisitions. According to the Bureau of Labor Statistics, the average annual salary of a corporate finance specialist in the U.S. was $99,330 in May 2008.
Risk Management
Risk management specialists evaluate and price business risks for firms and clients. They work with front-office departments--such as trading desks--to detect risk levels and find adequate risk-hedging methods and tools. They apply complex computer programs and mathematical algorithms to gauge securities' movements. They may focus on two types of risk: market and credit. Market risk is the risk of loss originating from fluctuation in securities' prices. Risk managers compute market risk by VaR (Value at Risk), stress scenarios or Monte Carlo Simulation methods. Credit risk arises from counter-party--or business partner--defaults and risk managers calculate this by rating models. According to the Bureau of Labor Statistics, the average yearly salary of a risk manager in the U.S. was $99,330 in May 2008.
Research
Research analysts focus on industries, economic sectors, securities, countries and geographic zones. They use math, economics, finance and business skills to analyze firms' or countries' financial data and detect key trends or metrics. They issue regular reports to clients and advise on asset selections and investment strategies. The Bureau of Labor Statistics estimates that a research analyst's yearly salary was $83,590 in May 2008.
Wealth Management
Also referred to as private bankers or personal financial advisers, wealth managers assess clients' financial information, evaluate key liquidity ratios or trends, and provide investment advice or tax-saving strategies. They may work at financial institutions such as banks or insurance companies. These experts focus on high-net-worth families, endowments, private foundations and retirees' funds. According to the Bureau of Labor Statistics, the median yearly income salary of a wealth manager in the U.S. was $69,050 in May 2008.
Trading
Trading has two types of career paths: traders and traders' assistants. Traders use firms' funds to select investment-security investments on public exchanges. Referred to as proprietary traders, they report in firms' statements of income all gains or losses made in transactions. Traders' assistants help traders price investments by using mathematical formulas and computer programs. According to the Bureau of Labor Statistics, the median salary of a trader or a trader's assistant in the U.S., excluding bonuses, was $68,680 in May 2008.
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