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Day: April 23, 2020

How Imarticus Learning Helped Neha Jha Land a Dream First Job at Morgan Stanley?

Posted on by Imarticus Learning

Like many newly-graduated commerce freshers, Neha Jha was faced with the daunting prospect of securing a job for herself in the highly competitive and ever-evolving investment banking industry. She was smart enough to realize that a mere college degree would not suffice if she wanted to land her dream job as an investment banker, and she soon learned that she would have to enhance her skills to make strides in her budding career.

After conducting her due diligence, Neha arrived at the conclusion that enrolling herself in the Certified Investment Banking Operations Professional (CIBOP) program offered by Imarticus Learning was the best and most logical step to take in pursuit of her career aspirations.

This turned out to be the wisest decision Neha could have taken, and she is quick to acknowledge the hugely positive impact the CIBOP program has had on her career, culminating in her getting an official certification on investment banking and job placement at Morgan Stanley, the prestigious global financial institution.

In her own words, Neha summarizes her experience at Imarticus by saying, “I’ve done the CIBOP course, and my journey at Imarticus was very good. I have learned a lot and obtained a lot of knowledge. My professor and trainer, Dharmesh Sir and Lourdes Ma’am, we’re very good at providing knowledge and solving all my doubts. As a result of enrolling in this course, I have finally been placed at Morgan Stanley. It’s my first job and I’m very excited. Thank you Imarticus!”

Neha Jha’s success story is one of the thousands of investment banking students who have harnessed the benefits of Imarticus Learning’s premier CIBOP program to boost their careers and give themselves an invaluable competitive advantage over their peers. This in-depth 180-hour program has been designed to help students acquire the requisite skills needed to become a modern-day investment banker by providing crucial insights into the complex functions of investment banking operations.

To find out more about Neha Jha’s experience at Imarticus Learning, please click here.

What Are Widely Used Underwriting Models in Credit Risk

Posted on by Imarticus Learning

Financial institutions around the globe manage and give loans to companies/businesses that need help. But hey have to manage the records of its clients and has to find out the possibility of non-payment. A good financial institution always has an expert team dedicated to this job.

They analyze the data/information of the clients and based on some attributes; they find out the trustworthiness factor on any particular client. This helps the bank to identify those clients who can ditch them in the future and thus they take measures accordingly.

In this article, let us discuss some famous methods which are widely used by people to calculate credit risk.

What is an Underwriting Model?

Underwriting is a structured process which is used by financial institutions/investors to find out the level/degree of vulnerability in terms of non-payment, late payment of dues can occur. It is a type of analytical job. It helps in reducing the chances of credit risk.

Let us discuss various types of underwriting which are widely used.

Widely used underlying models in credit risk

  • Traditional approach – There are many sites and surveys which determine the potential of risk in different sectors. Agencies like S&P, Moody, etc. determine the level of credit risk in different sectors such as mortgage loans, industrial loans, education loans, etc. financial institutions use this data and view the potential of risk according to them only. There is no specialized analytics conducted at the workplace. Such an approach is not bad because these agencies are highly credited and certified.
  • Rating based system – Its formula is the product of Probability of Default (PD), Exposure at Default (EAD) and Loss Given Default (LGD). It gives us the value of the expected loss. Expected loss = PD * EAD * LGD, Where, EAD is defined as the amount of credit given to any particular client. PD is defined as the low approval ratings and bad records which lead to the possibility of credit risk. For default companies, PD is 100%, LGD is the loss faced by the company/firm. A lot of analytical work is done in these types of approaches but they give more accurate results. Many financial institutions have dedicated workplaces and a highly valued job for credit risk analysts.
  • Advanced rating system – It has two types which are as follows:Calculated internally in the bank whereas EAD & LGD are provided by the bank supervisors who can also use various existing frameworks provided by BASEL to determine these aforementioned attributes. A lot of analysis is based on algorithms in this method.Advanced IRB approach in which all the attributes are calculated internally by the Foundation IRB (Internals Ratings Based) approach in which PD is  Bank but the work is mainly automated through good analytical models and frameworks.

The Five Fundamental C’s of Credit Risk

Five basic attributes are used across each model. These are the Credit history of the customer, Capital, Capacity of repayment, Collateral and Conditions of the loan. These C’s are manipulated into mathematical values and institutions find the potential/vulnerability of the credit risk from any particular customer. There are many accords and regulations such as BASEL III, IFRS 9, etc. which help in determining credit risk.

Conclusion

There are many types of fraud activities witnessed by financial institutions. To protect any such incidents, the institutions try to dig up about the client and conclude that if he is eligible for the loan or not. He will get the loan only if the approvers think that he/she can repay in due time.

This protects banks /investors from losses. There is a credit rating for each borrower which fluctuates based on his repayment. If he/she fails to repay, his credit ratings may go below and he/she may be denied a loan in the future. This article was all about widely used models for determining credit risk.

What is Financial Modeling?

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Understanding Financial Modeling

Financial modeling can be understood as a process of creating a company’s financial summary based on the income and expenses incurred in a spreadsheet format that can be used to calculate the impact of a major event in the future. It’s a mathematical model that helps to predict the future financial performance of an enterprise or a project based on historical data. It is the numeric representation of all the company’s operations which generates income and incurs the expenditure.

The forecast based on financial models takes multiple factors into account such as historical performance, future assumptions, macroeconomic trends, etc. There are various types of financial models, the most basic one is known as the 3 statement model; it requires preparing income statement, cash flow statement, balance sheet and supporting schedules. Some of the more complex models are discounted cash flow analysis model, sensitivity analysis, leveraged-buyout, etc.

What is the purpose of preparing financial models? Well, there are numerous applications of financial models. Some of the most mainstream uses include financial performance analysis and investment decision making. These use cases apply to both internal and external parties who are interested in the growth prospects of the company. Financial models help an analyst to facilitate complex multi-variable analysis and make models that closely represents a real-world scenario.

Investment-related decision making might include decision regarding the capital structure, acquiring business or assets, growing operations, asset diversification and sale, valuation, budgeting, capital allocation, etc. The internal party has numerous applications of financial modeling when it comes to decision making. Different types of models paint different pictures; it all depends on the inputs and assumptions related to that particular model. It is also used to compare the overall financial performance of one corporation with another or for two different industries.

Best Practices in Financial Modeling

Now that we have understood what financial modeling is all about, let’s jump into some of the best practices in the financial modeling arena.

Model Layout

Financial modeling is all about closely representing the real-world variables that might have an impact on financial performance. The model should focus on simplifying the variables rather than complicating them. It’s paramount to create a financial model in a logical and easy format. You can achieve that by building the complete model on a single worksheet and then use grouping for segregation. This helps to easily expand and contract the models.

Section Flow

The pattern of the flow of contents in the financial model is significant. A commonly used pattern in sections that can simplify your model is as follows (from top to bottom).
• Assumptions
• Income statement
• Balance sheet
• Cash flow statement
• Supporting schedules
• Valuation
• Sensitivity analysis
• Graphical data

Formatting
Formatting the contents of your model properly is considered more as a necessity than the best practice. It is very crucial to differentiate between the inputs and outputs in a financial model. Inputs here can be the assumptions and the calculations can be the output. You can easily apply the basic formatting conventions to reach the standard by making inputs in blue and outputs in black. Other basic formatting conventions in financial models include using borders, shading cells, etc.

Spread-sheet Hacks

As a financial analyst, your primary job is to build financial models on spread-sheet applications like excel. You need to be aware of the best practices in applications like Excel. You need to master the shortcuts and other hacks related to the tools being used. You need to use your keyboard more often and avoid using a mouse for making alterations. You should be mindful of the formulas and should try to keep it short and break down complex calculations into easy steps.

Also Read: Best Way to Learn Financial Modeling

How Can I Become a Financial Analyst Online?

Posted on by Imarticus Learning

The Role of a Financial Analyst

A financial analyst is one of the most lucrative career options for people pursuing a career in the field of finance. Financial analyst plays a key role in the day to day functioning of financial firms.

The role of a financial analyst in the age of data is very diverse and involves complex financial planning and analysis for companies. They help firms to make well-informed decisions by using their financial acumen. People working as financial analysts are required to produce reports using financial data.

Financial analysts also help to project future revenue and expenses that help to determine the budget for new projects that the firm is planning to undertake. The job description of financial analysts typically entails analyzing historical and current stats, identifying trends, assessing financial performance, preparing financial reports and communicating with important stakeholders, exploring new profitable investment avenues, developing financial models, building policies that will help to achieve financial growth, etc.

What Does it Take?

Now that we know the roles and responsibilities of financial analysts, let’s understand what it takes to become a financial analyst. Having a Bachelor’s degree in economics, mathematics, stats, and accountancy is a good way to step into the finance industry for the role of an analyst.  The ability to identify trends and data patterns is a crucial skill that one needs to become successful as a financial analyst. A Bachelor’s degree also forms the part of minimum education requirement needed for the role of a financial analyst.

A Bachelor’s degree is sufficient for most of the positions but some roles might require the candidates to have a Master’s degree in a relevant field, for example, Masters in Business Administration in Finance. One can even opt for highly specialised certification like the Chartered Financial Analyst program; it provides a holistic learning experience by focusing on core financial subjects like equity, portfolio management, corporate finance, alternative investments, ethics, etc.

Some of the key skills needed to become a successful financial analyst include analytical skills, quantitative acumen, detail-oriented, basic knowledge of financial software, interpersonal and communication skills.

Becoming a Financial Analyst Online

We are living in an era where internet technology has made it possible to avail the benefits of the real world virtually using our smart devices. Technology-based industries like Ed-tech and Fin-tech industries are booming constantly. Data has revolutionized the world around us and the finance industry is no exception. This evolution within the finance industry has led to increasing demand for financial analysts who can make sense of the complex financial data and help the firm with future growth and revenue projections.

The growth in the Ed-tech industry has made it possible for aspirants to learn and become financial analysts online. You can choose from a range of online financial analysis courses and certifications that provides a comprehensive understanding of the subject and imparts relevant practical knowledge and skills required to do the job.

We at Imarticus Learning offer best financial analysis course online that will help you achieve your dream of becoming a financial analyst. Our placement assistance team will provide you with the ideal platform to launch your career through resume building sessions, mock interviews, mentorship and interview preparation. Our team will also work towards finding you interview opportunities, as well as thoroughly prepare you prior to every interview.

Also Read: Future of Financial Analyst in India

9 Work-From-Home Business Ideas to Start Earning Money Right Now!

Posted on by Imarticus Learning

Everyone is talking about improving productivity and learning new skills during this lockdown period. But no one is talking about how to use this free time to earn money from home. With most people staying indoors, now is a great time to explore inventive work-from-home jobs. It might also be a good idea to start a business from home.

It can be to either create a secondary income or secure your future with a backup job in case the pandemic situation does not improve in a few months. All you need is a stimulus and a fantastic idea to begin with.

This article aims to help you kickstart your business-from-home activity and boost your overall earnings. Here are some interesting ideas for you to start earning money from home. Let’s begin.

9 Best Online Jobs from Home

The key to starting a lucrative work-from-home project is to start small. In an ideal scenario, you should look at a job that is in line with the skills that you already possess.

1.      Start an Online Course

One of the best online jobs to do from home right now is online tutoring. With school and college students finding it difficult to keep up with their curriculum, it is a great time to become an online tutor. The idea is to create an online course that you have considerable knowledge and practical experience. And then market it online to those who are in need.

As a beginner, you can create a YouTube account and upload some interesting educational content to test the waters before going full board. If even that looks like a big task, you can also begin tutoring your neighbor’s school-going kids.

According to a recent report, the global downloads for education apps spiked by over 300% in March 2020. No wonder then that apps like Byju’s and Toppr are gaining more users and engagement during these lockdown days.

Earning Potential: INR 3,000 per month and upwards.

2.      Homemade Food Delivery

Not exactly a work-from-home business but still a very relevant field to explore these days. If you feel your culinary skills can bring in some money home, this is a great opportunity for you.

The basic idea is to cook various recipes at home and sell them in your circles. It can be a boon to bachelors and families who used to depend on their maids for meals before the lockdown. You can fill the gap, and in that process, earn good money while working from home.

At first, you should look at covering nearby areas like your housing society or your colony. This is because of the curfew and social distancing measures set by the government. This business also has great scope for expansion in the future.

Earning Potential: INR 5,000 per month and upwards.

3.      Online Cookery Courses

This is similar to the online tutoring job that was discussed above. The only difference is that here you will be helping those who lack cooking skills. It cannot be denied that the number of such people has increased since the COVID-19 lockdown. This makes it a great opportunity for culinary artists.

The trick is to think of easy as well as tasty recipes that can be prepared using essential food items. You don’t want to suggest a recipe that requires Mexican peppers or American walnuts. Just basic ingredients that your potential viewers can easily source from their local market. Doing this will help you gain instant followers online.

This can also be tied to the #2 job and thereby increase your earning potential.

4.      Healthcare Consultation

Professionals in the medical field can create a secondary income by passing valuable healthcare information to those in need. This can be done via videoconferencing where you can help diagnose and solve issues of any scale. It can be as small as writing a prescription for a common cold or directing a potential COVID-19 patient to the appropriate testing clinic.

With the healthcare industry experiencing a deluge of requests from needy people, your extra time can be of great help. Secondarily, it can also act as a strong passive income source.

However, this is more difficult than it sounds. Unless you are a registered medical expert, your consultation will have no value. It is also not recommended to pursue this if you lack any medical qualifications. Disseminating false information is dangerous and highly frowned upon, especially in the current COVID-19 situation.

Earning Potential: INR 1,00 per consultation and upwards.

5.      Writing Services Network

This is a common freelance job where you provide writing services to agencies and brands. However, there is a way in which you can convert it into a work-from-home business. Instead of you yourself providing these services, you should scout for more like-minded people with a writing flair. Gather a team and create a network of writers.

This way you can exponentially increase your earnings. As a single writer, the maximum you can earn in India is around INR 40,000 a month. With a team of writers, this can grow 2x to 3x depending upon its size and the volume of work you produce.

If you are new to this but are confident about your writing ability, start providing the service individually first. Then move on and hire friends and acquaintances to join you as you all work from home and mint money.

6.      Digitize a Board Game

Today, the popular mobile game Ludo King has surpassed billions of app downloads worldwide. Why? It has helped people with two things:

  • To stay connected
  • To play together while being connected

These two are the only elements that have caused the number of downloads to skyrocket. Similar patterns have been observed in the game’s revenue.

Learning from this example, if you are a mobile or web app developer, now is a good time to explore creating such apps that have the multiplayer function. You can either digitize an existing board game (Snakes & Ladders does not have a fancy digital app version yet) or create a fresh one.

Of course, the competition is very high, but you can tackle it with a game that has some peculiar characteristics. This will require some creativity on your part.

Earning Potential: A few thousand per month depending upon the number of app users.

7.      Productivity Guidance (Virtual Work)

Are you a professional with years of experience in remote working? The world needs you right now.

While you tackle your own work-from-home assignments, you can also share valuable tips and tricks to other managers in the form of long-form articles, videoconferencing, and even personal consultation. You can charge a small fee for the last one provided you have some top credentials to support your claim of expertise.

Earning Potential: A few thousand (INR) per consultation.

8.      IT and Network Support

Different sectors have suffered differently due to the coronavirus situation. While some of these can sustain complete or partial shutdown, there is one field that still needs to run. And that is IT and network – the field that supports businesses to run smoothly.

As a network engineer, you can pitch your extra time to help smaller companies and agencies by providing IT and network support. This can be a money-making side business for you as there are a lot of small companies in India that are starving for IT support personnel.

Start by pitching yourself in your professional circles.

Earning Potential: INR 5,000 to INR 30,000 per month depending upon hours allotted.

9.      Motivational Coach

Last on the list is a job that can be a real profit-maker if you do it correctly. With people working from home and failing to indulge themselves in various outdoor activities, there is an overall drop in motivation levels. People are feeling low due to loneliness or work stress or some other aspect of their indoor life.

As a motivational coach, you can come to their rescue and help them stay afloat during this difficult time. All you need to do is keep their spirits up through video chatting. You can charge a small fee for a video consultation.

Earning Potential: INR 1,000 per consultation and upwards.

A Note on Freelance Websites and Portals

While there are many sites that you can visit to find such online work to do from home, here are some of the best and the most trusted:

  • com
  • Various job groups on Facebook
  • Subreddits or Reddit communities: r/forhire, r/freelance, r/freelance writers
  • com
  • com

Who knows how the future of work will look like? So, secure your future now by planting a seed today whose fruits you can bear in the uncertain years to come. Start earning right now!