Financial Analysts play a vital role in a company or an organization. They actively participate in all financial decisions and investments. They are charged with the high responsibilities regarding examining the market situation and investment related decisions.
Qualification for Financial Analyst:
There are many financial analysts who work for banks, mutual funds, insurance companies, security firms and other financial institutions. There are even financial analysts who work for large companies focusing on financial corporate decisions. A strong background in finance, accounting and financial statement analysis is mandatory. A minimum of bachelor’s degree is what most analysts pursue; however there are many higher qualifications and courses on finance. Analysts tend to be specialists in economic sector, or have some industrial expertise and experience.
Skills that business organizations look for a candidate:
- Candidate should possess strong analytical skills.
- Candidate should be able to work under pressure and need to be before deadline.
- Most importantly, financial analysts should be able to take right decisions for the clients and organization.
- Financial Analysts should be able to keep their clients satisfied while making sound financial decisions.
- They should be able to explain and prove their decisions with backing up the data.
- He should have problem solving ability.
- Critical thinking and logical skills in addition to business acumen.
The main procedure of hiring the skilful financial analyst is through interviews and financial analysis assessment tests performed by the organization as a pre-employment assessment test.
Tests that includes in financial assessment test analysis are:
- Assess verbal ability
- Reasoning ability
- Numerical ability
- Data analysis
Financial Assessment criteria:
This function establishes clear objectives, authority to oversee of financial activities, provide an analysis on business opportunities, financial management information system and even authorities to manage the response towards the issues.
- Organization structure:
Appropriateness of the stature and authority of the function head within the organization for effective fulfilling its mandate.The extent to which the function has the direct access to senior management and board committee and appropriateness of the organization structure with respect to nature, size, complexity and risk profile.
Adequate function processes to determine the required amount of resources to carry out responsibilities and in response to changes in business strategies. Qualification and competency of staff and even continuing professional development programs.
- Policies, practices and Methodologies:
Adequate policy, practice and methodology for collecting, analyzing and providing operating and financial information.In addition for measuring performance against objectives and identifying adverse trends. Even they have to be carefully documented, communicated and appropriately followed. Adequacy of function’s capacity for preparing analysis for Senior Management.
To report nature, level and timeliness and identify issues with recommendations to higher managements. Adequate monitoring, reporting and follow up on the resolution of the function identified issues.
- Internal Audit Oversight:
It includes reviews financial function and its key roles. And adequacy of Internal Audit’s communications and proper follow up.
You can use Software assessment tools to check the capability of the candidate. You can get the software customized as per your requirement and profile. Take references from your friends and business partners to get the best software for your business.