Financial analysts prepare financial reports and conduct risk assessments to assist companies with investment decisions and business acquisitions. Complex commercial transactions are handled a senior financial analyst. Financial reports are frequently prepared a group of analysts, with a senior analyst in charge of the group and the responsibility of relaying the team’s findings to clients.
A financial analyst needs a bachelor’s degree in business, finance, mathematics, or a related field, though some companies hire graduates with other degrees. The majority of analysts work for insurance companies, banks, or investment firms. New recruits must attend training sessions to learn about risk management, securities transactions, and the fundamental legalities of various financial transactions. Junior analysts are frequently paired with senior analysts and must complete a certain number of hours of work before being allowed to work independently. For a senior analyst position, many firms will only consider analysts with several years of experience.
Analysts at investment firms are frequently hired to provide advice to companies that are considering acquisitions or mergers. Analysts examine the financial statements of companies that the client firm is interested in acquiring. A senior financial analyst assigns tasks to each team member, such as preparing a review of the company’s past financial performance or developing future growth projections. The senior financial analyst creates a master report after each aspect of the report is completed, and a copy is given to the client, along with a recommendation on whether the firm should pursue the deal or look for another company to acquire.
A senior financial analyst plays a role in deciding how an insurance or investment firm should invest its own assets, in addition to assisting firms in mergers. Analysts don’t usually have securities licenses, so they can’t broker securities transactions, but they can do research on companies, look over the books of governments issuing bonds, and look at economic trends. A senior financial analyst may meet with senior management on a regular basis to share information about recent findings that may have an impact on the firm’s investment strategy.
During recessions or other periods of economic upheaval, governments frequently consult senior financial analysts. In some countries, government ministers appoint senior analysts to committees, and these ministers seek the analysts’ advice before making major policy decisions. Senior analysts are frequently paid to work as consultants on news shows or in newspapers.