The job market is flooded with new opportunities for
finance professionals. Many of these jobs do not
even require a degree in finance or commerce. However, it is always a good idea to equip yourself with some
additional training and certifications because,
in this competitive job market, your knowledge will only help you stay ahead of
the rest.
Image Source: Udemy
With the
financial job market constantly evolving,
there is a need for specialists who are excellent on a particular aspect of finance. While degree and diplomas follow
a generalist approach to teaching, certifications
offer a finer level of expertise which can be of great help when there comes a
demand for a specialist. However, there
is some confusion regarding the difference between a license and a certification which must be cleared before further
discussion.
A license is
offered by the government or any other conferring body and is the minimum requirement for conducting a particular
business or starting your own practice. For
instance, if you want to enter the insurance industry and sell insurances to
new clients and individuals, then you must apply for a license. It is the
equivalent of a government approval that allows you to conduct this business.
Another popular example is that of a
stockbroker.
Only a licensed stockbroker can discuss or sell stocks, bonds
and derivatives and this license is earned by passing the government sponsored
S7 General Securities Representative exam by the Financial Industry Regulatory
Authority. Thus, a license is the bare
minimum requirement for conducting business as a financial advisor, stock
broker, tax consultant and virtually
every financial business. A certification, on the other hand, adds to
your credibility and gives your personal brand a much-needed boost in the
cut-throat competition.
These certifications will add weight to your candidature
when dealing with wealthy clients. Here is a couple of such certifications that offer
best value for money:
Chartered Financial Analyst
Perhaps the most
common of them all, CFA is a globally recognized certification, approved by
investment professionals, employers as well as investors. The CFA program
offers candidates perfect balance of hands-on knowledge and theory which is
needed for a fruitful career in the investment profession. The CFA
certification teaches students about a number of topics such as portfolio
management, accounting, and derivatives.
CFA is divided
into different levels, with minimum 18 study sessions for each level. It is a
self-study based program and you will have to pass at least three consecutive levels
with each exam six hours long. As per the guys at CFA Institute, the average
time duration taken by candidates to complete this program is four years.
In
addition, CFA certification requires a minimum work experience of four years.
The RoI of pursuing this difficult certification are handsome as most sound financial service employers list CFA
charter as highly desirable. With a CFA, you can apply to titles such as
Financial Analyst, Business Planner, Investment Banking Analyst or Consultant. This
blog post at Udemy, the online course provider sums up all details about becoming a
CFA, including salaries and possible titles.
Certified Financial Planner
The Certified Financial Planner Board of Standards, a US-based organization, offers CFP certification to those
who want a more holistic view of money management and financial planning. To
pursue CFP certification one must be a college graduate. To be called as a
Certified Financial Planner, you will have to complete financial planning
coursework and satisfy a three work
experience requirement.
Although it is
prominently a US concept, the global financial world recognizes CFP through
Financial Planning Standards Board. It is non-profit organization that sets
standards for the exam in different countries that administer it. To remain a
continual part of CFP, you must pay annual fees and also constantly upgrade
yourself to meet the on-going continuing education requirements.
Financial Risk Management
As per the
official site, Financial Risk Management is a globally recognized standard for
every professional who manages or intends to manage risk. Financial Risk
Managers do just what they are trained to do- administer
credit risks, market risks, liquidity risks and any other types of risks
arising out of any seen, unseen market force. In order to be an accomplished
Financial Risk Manager, you must pass two comprehensive exams and posses two years professional full-time
experience in this field or related field such as industry research, portfolio management, and auditing.
While these are
some certifications for beginning a stable and thriving
career finance industry, there are some online certification courses
for finance that you can pursue even while being a part of the industry. The
purpose of these courses is to keep you updated on the latest trends and
industry standards. In this competitive age, it helps to remain updated to stay
ahead of the game.
Author: Aditya Singhal
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