International Treasurer >>
World Investment Analyst
Commercial Bank Officer >>
Central Bank Officer >>
International Development Bank Officer
Insurance Broker >>
Risk Analyst >>
Central Bank Officer
Central banks do not carry on commercial or investment banking, but they do engage in a variety of activities that rely heavily on knowledge of international financial and economic developments. They employ a wide range of officers who are primarily engaged in economic, financial and monetary analysis, as well as the conduct of open market currency trading and the provision of complex policy advice for senior government officials and private sector decision makers.
Bank officials provide detailed briefings for senior government and private sector officials concerning the significance of this information.
Control of the currency is a basic function of central banks. The Federal Reserve Bank officials monitor domestic and international developments in order to understand movements in the exchange rates of key currencies. The Federal Reserve banks also manage the government's World exchange reserves. This includes investing the reserves, buying World exchange to cover the requirements of government departments, managing borrowings to replenish reserves, hedging World currency positions, and engaging in gold transactions.
Qualifications
Since central banks do not carry on commercial bank or investment banking activity, the traditional banking educational background receives less emphasis in these positions. An MBA, with some preparation in international economics, is a possible qualification, but graduate degrees in economics are more commonly specified in current advertisements. Ph.D. degrees are not uncommon, but are not generally required.
Skills and Aptitudes
Analysts working for a central bank need to be familiar, at both the theoretical and practical levels, with trade and balance of payments, as well as with domestic and World economic developments. They must have superior analytical skills and the ability to combine information from many sources to synthesize advice. Presentation skills are required to advise senior officials on the impact of international developments on currency markets and the domestic economy. This type of work appeals to people who can operate in a high-profile environment where the standards of accuracy are extremely high.
^ TopInsurance Brokers provide insurance for the physical, commercial and political risks associated with international trade. Private sector companies provide many of these services, but some of them are also provided by government organizations like the Export Development Corporation (EDC).
The EDC has developed a particular expertise in analyzing the risks faced by smaller companies and designing insurance services to meet them. More than 85 per cent of EDC’s customers are small- and medium-sized enterprises (SMEs), and the corporation is focused on ensuring that these companies are able to compete in the international marketplace on the same basis as larger organizations.
Very few businesses engage in economic activity outside the United States without some form of insurance. The form of this insurance and its cost is based on the careful analysis of the credit worthiness of buyers, the viability of business and marketing plans, and product characteristics as well as country risk factors.
Insurance brokers arrange policies that protect against such events as buyer insolvency, default on payments, repudiation of goods, contract termination, World exchange conversion or transfer payment difficulties, war, revolution or insurrection, cancellation of government import or export permits, wrongful calls on bid/performance guarantees, and inability to repatriate capital or equipment due to political problems.
Qualifications
Insurance Brokers and their supporting staff usually require a strong accounting background. An MBA degree is a common requirement, but a Bachelor of Commerce degree, or a graduate degree in economics is often accepted. Formal accounting training, sometimes combined with sector specific knowledge may be required.
Skills and Aptitudes
Insurance Brokers and their supporting staff need to understand insurance principles and know how to analyze and quantify risk.
Attention to detail is necessary in these jobs, and computer literacy is assumed. Quantitative analysis is important, and some aptitude for it is required. The ability to assess complex data and develop an insurance solution based on less than perfect information is sometimes required.
Risk Analysts advise and counsel companies and senior decision makers on the political and business climate in World markets. They often work closely with insurance brokers and in some cases development bank officials. But unlike analysts in those organizations, they are not necessarily expected to design specific financial or insurance solutions to problems suggested by the analysis. In organizations such as the EDC, the analysis and response functions are combined but individuals specialize within the overall mandate.
With the growth of the international economy in the 80s and 90s, risk analysis was a growth function. According to many observers, political risk analysis is now being absorbed into the emerging markets operations of commercial and investment banks and is now less likely to constitute a specialized line of activity.
Most risk analysis is a team effort rather than an individual activity, because of the diversity of factors which have to be taken into account. Most large multinationals have in-house risk analysis, as do large banks and financial institutions.
Qualifications
There are no standard qualifications for Risk Analysts, although a general background can be obtained through academic study. A strong grounding in traditional financial and economic analysis must be combined with specific country and market knowledge. Political risk analysis in developing countries is taught in the political science faculties of most large universities.
An MBA, or a degree in commerce or economics, backed up by a careful choice of courses would be an appropriate qualification for entry-level positions. Senior Risk Analysts require several years of experience in the sector, country or other specialty involved.
Skills and Aptitudes
Candidates for risk analysis positions must have a detailed knowledge of the sector and/or geographic areas being analyzed. Strong quantitative skills are required as well as the ability to incorporate non-financial data into a comprehensive package.
Superior analytical and computer skills are required along with the interpersonal skills necessary for teamwork. People in this line of work must be comfortable making judgments based on partial or imperfect information, and they must have the presentation skills to defend their decisions.
EMU Home | Contact EMU | Site Map | Directories | Calendars | My.emich | Search