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Tag: investment banking career

Diploma in finance management – What’s trending?

Posted on by Imarticus Learning

Finance professionals are in high demand, and with good reason. Companies need individuals who can help manage their money effectively and make sound financial decisions. In this blog post, we’ll take a look at what’s trending in finance management courses for 2022. We’ll also discuss the benefits of earning a diploma in finance management. So whether you’re just starting your career or you’re looking to upgrade your skills, read on for more information!

According to the Bureau of Labor Statistics reports, the finance and insurance industry expects to grow by fifteen percent from 2016 to 2029. It means that there will be a lot of job opportunities for qualified professionals in the coming years. If you’re searching for a career with stability and growth potential, then finance is the field for you!

What is a diploma in finance management?

A diploma in finance management is a qualification that teaches you the essential skills and knowledge needed to work in the finance industry. It covers accounting, financial analysis, investment banking, and risk management. The diploma usually takes one year to complete, and it can be studied online or at a traditional campus.

What skills will be in high demand for finance professionals in 2022?

A diploma in finance management is a great way to stay ahead of the curve in the world of finance. 

  • Analytical skills: Analyzing data and spot trends is critical in finance. 
  • Profit and loss analysis: Knowing how to interpret financial statements and calculate profits and losses. 
  • Finance management skills: Understanding key concepts such as budgeting, cash flow, and risk management is crucial for anyone working in finance. 
  • Financial modeling: Building accurate economic models is a highly sought-after skill in the finance world.

What are the top trends in finance management for 2022? 

Here are the most important ones:

  • Increased focus on data analytics and prominent data-Finance professionals need to analyze data to make sound financial decisions. The growth of big data means that finance professionals will need to be proficient in data analytics to stay competitive. 
  • Increased focus on risk management- Finance professionals will need to identify, assess and manage risk to protect their businesses. 
  • Increased focus on sustainability-With the increasing awareness of environmental and social issues, businesses are starting to focus more on sustainability. Finance professionals need to integrate sustainability into their financial decisions to ensure that their business is sustainable.

Discover Diploma in finance management with Imarticus Learning

The financial risk management course is for students who wish to get a broad grasp of investment banking, capital markets, and risk management. It offers world-class education to high-performing middle management professionals with at least two years of experience looking to restart their careers in financial services.

Course Benefits For Learners:

  • Learners will benefit from an outcome-focused curriculum and practical learning style that will help them develop competency in crucial areas such as capital markets, risk, and fintech. 
  • Our Financial Services and Capital Markets course offers a cutting-edge curriculum that teaches the student the fundamentals of corporate finance, risk management and compliance, capital markets, valuation, and equity research. 
  • As part of this program, students will have the chance to meet and connect with their classmates and industry professionals. 

Here’s why IIM Calcutta Investment Banking and Capital Markets course is preferred by Bankers

Posted on by Imarticus Learning

Almost every bank and financial services organization, including the top 10 investment banks have picked their cherries from IIM Calcutta for well over a decade. The demand for skilled professionals in the investment banking and capital markets is at its zenith now. And, IIM Calcutta’s 12-month executive development program has grabbed the attention of the banking community raising great expectations.

IIM Calcutta Investment Banking and Capital Markets Course

The IIM Investment Banking and Capital Markets course is scheduled to commence its journey from April 2022. Imarticus has collaborated with IIM Calcutta to deliver this course. Successful participants get certified by IIM Calcutta and qualify as alumni of the IIM Calcutta Executive Education.

To a working banker, the IIM Investment Banking and Capital Markets course comprehensively delivers a foundational and advanced knowledge of global capital markets and investment banking. 

From the course you stand to obtain knowledge about the following:

  • A holistic framework and fundamentals about debt and equity capital markets
  • Portfolio management
  • Mergers and acquisitions
  • Sales and trading
  • Securities regulations 

In 12 months, you get to attend a three-day immersive workshop at the IIM Calcutta campus, gaining from personal interactions with the faculty and other participants. The IIM Calcutta Capital Markets and Investment Banking course curriculum is unique too. It provides in-depth domain knowledge and culminates with a capstone project where the assimilated knowledge is put to practice. Live case studies, analysis and strategy form your experiential learning from the course. 

What do You Gain From The Course?

Your IIM Calcutta Investment Banking certification comes post successful validation through three foundation modules (Financial Accounting and Analysis, Financial Management and Financial Economics) and seven advanced modules that enrich you with the fundamentals and structures of:

(a)  Debt Capital Markets (debt financing and valuation, debt origination and structuring, credit appraisal, and loan portfolio management)

(b) Equity Capital Markets (equity financing and valuation, equity origination, underwriting, and issuance mechanism)

(c) Mergers, Acquisitions and Advisory (corporate restructurings, merger and acquisition deal-making and valuation, takeover tactics, and leverage financing)

(d) Portfolio Fund Management (portfolio theory and asset pricing models, factor investing, private equity and alternate investments and portfolio investment strategies)

(e) Securities Market Research and Valuation (industry analysis, cash flow estimation, corporate valuation, and industry analyst research report evaluation)

(f) Securities Market Sales and Trading (market microstructure, derivatives trading, high-frequency finance, and securities market trading strategies)

(g) Securities Market Regulations (security market issuances and security issuers, capital market investors and regulators, market infrastructure institutions, and corporate governance mechanisms)

What do You Emerge as?

The IIM Investment Banking and Capital Markets course transforms you into a banking professional holding skillset perfectly tailored to the needs of modern-day banking. Your knowledge is honed through hands-on application of course learning by the way of capstone projects, analysis, business case studies, and recommendations on strategy.

You become an IIM Calcutta-certified human asset with a minimum of two years of work experience, specialized practical knowledge, and in-depth area information of global capital markets and investment banking.

For survival and growth in a competitive environment, banks are seeking more and more exposure to value-added services. IIM Calcutta’s Investment Banking and Capital Markets course make you ready with hands-on capabilities to prosper in these areas.

Here’s why non-engineers are opting for IIM Calcutta Investment Banking and Capital Markets certification

Posted on by Imarticus Learning

The IIM Investment Banking and Capital Markets course is the ideal stepping stone to excel in the financial sector. Although we are increasingly talking about technology and the impact of engineering, the world of finance is growing and evolving.

Now you can be fully prepared thanks to this pre-program that Imarticus has created with IIM Calcutta. The financial sector is looking for experienced professionals with solid knowledge in Investment Banking and Capital Markets.

Why Take the IIM Calcutta Investment Banking Certification?

You will gain knowledge in the main activities and services of investment banking, for example:

  • Financial analysis and diagnosis
  • Valuation of companies
  • Financial advisory services
  • Financial structuring of projects

Investment banking assists individual clients, private companies, and governments in their efforts to raise capital. Investment banking positions itself as an agent for raising such funds to place securities in the capital markets.

Why Is A Capital Markets Certification Course Important?

The capital markets promote the development of companies, since being a financial market here are made buying and selling financial assets listed on the stock exchange. Through this market companies acquire financing and channel it to convert it into product development. 

Among the topics you will see in-depth in the program are:

  • mergers, acquisitions, and restructurings
  • portfolio fund management
  • securities market research and valuation
  • securities market sales and trading
  • securities market regulations
  • financial accounting and analysis
  • financial management
  • financial economics
  • debt capital markets
  • equity capital markets

Benefits of The Imarticus And IIM Calcutta Programme?

The program remains at the forefront of current trends, throughout the course you will witness different methodologies that ensure engaged learning. Through case studies and current examples, you will have the opportunity to expand your skills and reinforce your knowledge. The program offers you the opportunity to learn not only the fundamentals but also advanced modules.

  • Foundation modules: financial management, financial accounting, and analysis, financial economics.
  • Advanced modules: equity capital markets, debt capital markets, mergers, portfolio fund management, acquisitions and restructurings, the securities market.

There are several benefits that make the difference between the IIM Investment Banking and Capital Markets Course and Imarticus. This program is perfect for professionals with experience in the financial sector. Here are some of the main advantages:

  • On-campus immersion
  • State-of-the-art curriculum
  • IIM Calcutta Executive Education Alumni Status
  • Unique teaching

What is a Capstone Project?

The course culminates in a Capstone Project that will help you apply what you have learned in a practical way to confidently enter the job market. This final project consists mainly of:

  • Applying what you have learned during the course.
  • Boost your profile with the new knowledge and skills acquired.
  • Gain practical knowledge through exposure to the real world.
  • Testing your acquired skills and knowledge.

In short, knowledge and experience in capital markets and investment banking is essential to succeed in such a competitive sector. The ability to make decisions and develop strategies that help companies achieve their goals is highly valued.

The IIM investment banking & capital markets course will not only prepare you for real-world situations but will also help you build an excellent network of contacts through contact with some of the best professors in the country. If you are on your way to building your professional career this is the ideal program for you, plus as a bonus when you become an Alumni you will get 5% on any IIM Calcutta program.

Historic Returns: Money market instruments and functions

Posted on by Imarticus Learning

Historic Returns: Money market instruments and functions

The money market is the set of wholesale markets where the exchange of short-term financial assets, up to 18 months, takes place; with a very low level of risk, largely thanks to the solvency of their issuers and high liquidity. This type of financial market includes the interbank market, the Treasury bills, and notes market, the certificates of deposit market, the bills of the exchange market, and, in general, the market for all short-term financial assets.

What determines the money market?

The main objective of the money market is to provide users and economic agents with the possibility of holding part of their wealth in the form of securities or bonds, with a high degree of liquidity and an acceptable return. The main economic agents participating in the money market, both offering and demanding short-term funds, tend to be mainly banks, savings banks, and public administrations.

Non-bank financial institutions, such as life insurance companies, also frequently use the money market as an outlet for surplus cash, although they usually invest their cash holdings in long-term securities.

Characteristics of the money market

The money market is characterized above all by the following features:

  • The participants in the money market tend to be specialized and well-resourced financial institutions.
  • The assets traded have a very low level of risk thanks to the solvency of the organizations. There is a high level of security.
  • They are highly liquid because they have a very short maturity. Investors will have liquidity at the moment they need it.
  • Transactions can be carried out directly or through specialized intermediaries.
  • They are very flexible: the money market investor has the flexibility to invest in a large portfolio of securities and securities, which will result in a diversification of risk even if the options for return diminish.

A distinction must be made between the primary and secondary markets. The primary market is where new securities, commercial paper, are issued and can be issued. The secondary market is where securities that have already been issued are traded. This implies that the purchasers of the securities buy them from the owners and not from the issuers. 

Types of money markets

There are several types of money markets, as detailed below:

  • Corporate asset market: corporate bonds stand out, where debt instruments are issued by a company on a short-term basis and have a payment obligation. It is a way of financing businesses and the guarantee of payment is the company itself.
  • Interbank money markets: in this market financial firms conduct credit and lending operations through short-term derivatives, interbank deposits, short-term interest rate swaps, and other financial assets, with a maturity period of either one day or one week.
  • Government debt money market: this market deals with government debt. Normally after notification of the calendar, the Treasury issues a series of auctions each year.

When to use it?

Money market investments should be made when you have the liquidity to invest, but you will need it soon and without being able to take excessive risk. This is when the money market is used because of its high liquidity and safety. In this way, the money is not tied up in the bank, but the investor knows that he can access it at any time and that it is safe because of the guarantees offered by the issuers.

Generally, money market assets can fulfill three roles in portfolios: 

  • to support planned (and even unplanned) expenses
  • to act as a buffer against unexpected liquidity events
  • to lessen the negative impact of future negative corrections in financial markets and to have an amount available to take advantage of future investment opportunities.

How do learn more about this?

The Certified Investment Banking Operations Professional of Imarticus equips you with the skills and knowledge necessary to enhance your career in investment banking. Realize your potential and enter the world of finance on the right foot.

Derivatives markets: Stock and futures options might be more similar than you think

Posted on by Imarticus Learning

Introduction

People who don’t know a lot about the derivatives market might not be aware of the factors that make futures and stock different. There are some similarities between stocks and futures but they are usually known for their differences. To understand the derivatives markets much better, you will have to take some Investment banking courses.

If you want to understand the securities market better, you will have to understand the basics of stocks and futures. You can try and learn investment banking from the online courses that we provide if you want to make a career in investment banking.

Similarities between Stocks and Futures

The most prominent commonality between the stocks and futures is that they are traded at an organized and legal exchange. You can short sell futures, and the same is applicable for stocks. However, a short sell in the case of stocks can only be made when the stock price goes up the tick.

A course in investment banking will give you a better understanding of how stock and future options have several similarities along with their differences. These securities have several overlaps, which makes it essential for you to understand the involved nuances.

Both of these instruments allow you to diversify your portfolio; stocks and futures can be used to invest in various industries and areas. Furthermore, both forms of securities are readily available. You can usually buy and sell stocks on the spur of the moment, giving you immediate access to your funds.

Investment Banking Course

The futures market is also quite liquid, with futures contracts changing hands regularly. Stocks and futures can also be used to generate cash. Dividends are a common source of current income for many stocks. Because futures contracts are marked to market daily, they generate cash flow, positive or negative.

The other prominent feature of both of these securities is that they are traded through a middleman like a broker in most cases. Also, in both of these investments, one of the primary focuses is exposure to the physical assets. You receive a contract or a certificate when you get into a future contract and when you buy a share. We have looked at some similarities. Now, let’s look at some of the differences between the two securities.

Differences between Stocks and Futures

You are not investing in a corporation when you buy futures. Instead, you’re purchasing a contract that gives you access to real assets such as maize, soybeans, coffee, or oil. Futures contracts can be bought for stocks, bonds, currencies, and even the weather. You may have a share certificate in your hand, or at the very least, see the security displayed in your online account if you invest in stocks.

When you decide to invest in equities, the number of shares available is limited until the firm sells more on the open market. Stocks don’t usually expire when a company is still operating. For long-term equities investors, “buying and holding” is frequent. On the other hand, futures contracts require you to promise to buy or sell a commodity at a future date. It’s not about buying and holding with futures; instead, it’s a technique for entering and exiting the market.

Conclusion

We at Imarticus provide the best courses in the finance domain that will help you gain the required expertise and become a seasoned professional. You can take up the Certified Investment Banking Operations Professional that we offer if you want to know investment banking in and out. 

 

The CIBOP courses that we offer are designed to provide both basic and advanced knowledge on everything involved in the investment banking field. The course will cover everything on the Derivatives Markets. 

What not to do while building an investment banking career

Posted on by Imarticus Learning

The world of finance moves at a break-neck speed, and the competition is fierce. Building an investment banking career requires patience, determination, and hard work. While working in this competitive environment, the last thing you can do is make any mistakes that could harm your reputation or hinder success.

In this blog post, we will discuss what not to do while building an Investment banking career so you can start on the right foot from day one!

What is Investment Banking Career?

Investment Banking is a financial services industry that provides wealth management, mergers, and acquisitions, commercial banking solutions for large corporations. An investment banking career is an excellent opportunity for people who want to work in a high-paying industry. 

It’s also beneficial for those interested in global finance and business. The skills you learn in investment banking can be used in many other industries, so it’s an excellent way to gain knowledge and experience.

What are the common mistakes people make when starting investment banking?

Here are the three mistakes that you want to avoid:

1. Not doing your research

When starting investment banking, it’s essential to research and learn about the industry. It includes learning about the different products and services that investment banks offer and the key players in the market. You should also be familiar with the latest news and trends in the industry.

2. Not networking

One of the most important things you can do in investment banking is network with people in the industry. It includes meeting with clients, potential customers, and other professionals. Networking can help you build relationships and learn about new opportunities.

3. Not having a long-term plan

If you don’t have a long-term plan for your investment banking career, it can be challenging to determine the next steps that you want to take. It will help if you know where you want to end up in five or ten years and how you can achieve this goal. Investing time now will help you reach your long-term goals.

Avoiding these mistakes will help you build a successful investment banking career. By doing your research and networking with people in the industry, you’ll be on the right track to achieve your goals.

Explore and Learn Investment Banking with Imarticus Learning

Students learn about complicated securities and derivatives, their trade-lifecycles, and the services that make up investment banking operations. These 180-hour powerhouse Certified Investment Banking courses will thoroughly prepare students for a job in investment banking operations, treasury, and clearing services. 

This alliance will provide learners interested in pursuing careers in investment banking with access to the LSE Group Academy’s best-in-class learning content, delivered by top-rated professors.

What students draw from this course:

  • Students at Imarticus Learning are working in most worldwide investment banks with the CIBOP credential authorized by the London Stock Exchange!

  • Impress employers & showcase skills with Investment banking courses recognized by India’s prestigious academic collaborations.

  • World-Class Academic Professors to learn from discussions and live online sessions

What Does a Money Market Analyst Do?

Posted on by Imarticus Learning

Money market analysts collect and scrutinize data to give an interpretation of the market to help companies make proper and informed business decisions. Some of them also analyze financial market trends so that they can help in making investment-based decisions while many others analyze financial statements of a company or the performance of a sector to help pinpoint investment potential.

One of the roles of money market analysts involves the analysis of investments and their performances in the market. They rely heavily on financial analysis, market analysis, and forecasting to determine the value or the investment opportunities of various companies. This detailed process commonly includes the analysis of a company’s profitability, earnings, revenue, outstanding debt, and sales.

Money market analysts primarily use statistical models and financial ratios to interpret data in order to help in comparing a company’s data to that of others in a specific industry. This job role also heavily depends on the use of accounting and thoroughly interpreting and reviewing the financial statements like balance sheets and income statements of a company. 

Skills required to be a money market analyst 

A money market analyst is required to be proficient with Microsoft Excel and have familiarity with data management/data queries tools such as SQL, Access, and Business Objects. Money market analysts are integral to companies as they are responsible for the collection and analysis of data. 

They are always required to have a proper understanding of how a market runs. A money market analyst should also understand the principles of the economy and have the ability to create reports of deductions and recommendations. They are more like experts in charge of running the show behind the scenes. 

Money market analyst job description

A money market analyst is crucial to any start-up or large company. Here are the roles a money market analyst is expected to fulfill:

    1. Carry out financial forecasting, operational metrics tracking, and reporting
    2. Analyze financial data (like past results) to make financial models support decisions, identify trends, perform variance and recommend suggestions for further improvement
    3. Report financial performance and prepare for leadership reviews daily
    4. Collaborate with the accounting team of a company to make sure the financial reporting is accurate
    5. Evaluate financial performance through the analysis and comparison of actual results with forecasts and plans
    6. Guide through the process of cost analysis by creating and enforcing procedures and policies
    7. Provide the analysis of forecasts and trends and further recommend the necessary actions for optimization
    8. Identify and drive improvements for processes, including the establishment of ad-hoc and standard tools, reports, and Excel dashboards
    9. Help increase productivity through the development of automated forecasting/reporting tools

 

  • Fulfill the roles of data mining, market research, valuation comps, and business intelligence

 

Money market analysts are often given the responsibility of tracking a company’s financial plan. They are responsible for the analysis of the performance of any company and also keep a track of and evaluate the market changes and the change in trends. They are not only responsible for creating forecasts, but also to calculate the variance between the said forecasts and actuals. 

All in all, the job of a money market analyst can be a handful and requires a good grasp of knowledge and skills. It is a job role that is in high demand and if you are planning to pursue your career in this sector, then you can go for a reputable investment banker course to have a better understanding of financial planning and analysis.

Finance Edition – Money Management in 2022

Posted on by Imarticus Learning

Be it an individual or a company, everyone needs to manage their funds and use them wisely. It is why companies hire money management experts to utilize their capital wisely. Usually, business organizations rely on investment bankers for money-related advice.

Most people are unaware of the basic concept of money management. By knowing about money management, you can also boost personal growth. Are you looking for an investment banking course to learn money management skills? Read on to know more about money management and the best investment banking certification course. 

Understanding money management 

Planning how to spend the available capital comes under money management. It includes saving, tracking, and spending the available funds. Even big business owners also need help with money management. They cannot just keep their capital stored in a locker for ages. They need to invest the available capital and grow it over the years. All these processes come under money management. 

Investment bankers are usually the ones who have excellent money management skills. If there is a good investment opportunity that can grow your capital size, investment bankers will identify it. Many investment banks have HNI and UHNWI individuals as their clients that need help with money management. If you are preparing for a job in the investment banking sector, you should have some money management skills. Money management skills will help you manage personal finances effectively. 

When talking about corporate finance, money management is concerned with budgeting. A company’s budget is created based on the marketing strategies and overhead expenses. Currently, there is a lack of skilled investment bankers that are into corporate finance management.

It is why business organizations are ready to pay a hefty amount to young investment bankers that can help them with money management. You can choose a reliable money management course and grab a lucrative job deal in 2022. 

Money management skills to learn in 2022

Some money management skills an investment banker should know in 2022 are as follows: 

  • An investment banker should know the 70/20/10 when it comes to money management. According to the 70/20/10 rule, 70% of the money should be allocated for necessary expenses and bills. 20% of the available money can be allocated to debt and savings, while 10% of the money can be spent on wants. Some corporate entities also follow the 50/30/20 rule while creating corporate budgets.
  • Corporate entities hire money management experts to set financial goals. If you are an aspiring investment banker, you should be able to evaluate the current financial performance of any company. Based on the current financial situation of a company, financial goals are decided.
  • Debt management is one of the crucial tasks in money management. No company wants to sink in the ocean of debt and hamper its business continuity. Investment bankers help corporate entities to decide their repayment capacity. Based on the repayment capacity, debts are taken by entities to meet financial obligations. 

These were some of the necessary money management skills for investment bankers in 2022. We at Imarticus Learning have bought a specially-designed course for young investment bankers looking to make a mark in the industry. Our CIBOP course is best to learn investment banking skills in 2022. 

Why rely on the CIBOP course?

We offer the CIBOP course to young investment bankers in association with the London Stock Exchange Group. It consists of an industry-oriented curriculum that will make you aware of the trending practices in the investment banking sector. Towards the end of the CIBOP course, we will help you get a lucrative job offer and kickstart your investment banking career. Join the CIBOP course and learn money management skills in 2022!

5 things that should be on the radar of every investment banking operations professional

Posted on by Imarticus Learning

An investment banking career is undoubtedly going to be extremely rewarding and lucrative in days to come. Amongst the plethora of roles in investment firms, one of the most sought-after high-profile jobs is investment banking.

The primary roles of an investment banker are to facilitate transactions amongst two firms such as acquisitions or mergers and aid companies who wish to go public (IPOs). They are also responsible for the creation of investment models to aid in business plans in an organization. 

Becoming an investment banker can be a challenging feat because they are required to have various tangible and intangible skills. Additionally, it is a mandate in their field of expertise to have a vast and thorough knowledge of the industry, adequate market information, know-how of tools and software, and also information on newly-emerging advancements in the market. 

Things to look out for in investment banking

  1. Industries and innovations in domains: Investment bankers have the responsibility to be aware of the latest advancements in the sector they are specializing in and the technologies that are being introduced. This helps them stay updated about the domain they are working with to help their clients more effectively. Investment bankers must be armed with extensive industry knowledge and also with information on how other companies are faring in the same domain. 
  2. IPOs, M&As, and market information: Knowing about active or ongoing mergers and acquisitions is essential for investment bankers. Investment banking operations professionals are required to stay updated on recent IPOs and about companies that are planning to go public. Market research is absolutely crucial for investment bankers and they must always look for market information (both existing companies and startups) on their radar. 
  3. State-of-the-art tools and software: Investment bankers must be capable of using analytical software such as Tableau and SAS (Statistical Analysis Software). Professionals in this domain are also expected to be able to use risk management software, business intelligence tools (such as Power BI) and even ERP (Enterprise Resource Planning) systems in order to carry out financial analytics.Since most MNCs and corporate/commercial banks are adopting these software or similar tools, professionals in investment banking must be aware of these technologies and how they can be incorporated.

     

  4. International affairs and geo-politics: Global affairs and national occurrences can alter the course of a project or influence the revenue of companies or markets. An entire domain or sector can get affected by political or economical factors.For example, if two countries are engaged in political issues, then it can affect the import or export of certain goods, thus hampering the operations of a company or even a sector. This was seen in the case of companies that import Chinese products or use raw materials such as plastic granules from China.
  1. Corporate banking and commercial awareness: Commercial awareness is the understanding of how to make a company successful. When it comes to investment banking, by being aware of how similar products, services or companies are faring, one can help his/her clients grow their business and gain revenue.Being aware of corporate banking or commercial banking trends is also important for professionals in this domain. Investment banking operations professionals must be able to help their organization make good investments or provide loans to businesses that will be able to pay them back. Due to this, it is essential for investment bankers to be aware of good and bad investments.

A career in investment banking requires certain skills and detailed knowledge about the market. These skills can be easily acquired if you learn investment banking by taking up a reputable investment banker course.   

Related Blogs:

The Roles Of Investment Banker

 

Why are Risk Management Courses Gaining Popularity?

Posted on by Imarticus Learning

Why Are Risk Management Courses Gaining Popularity?

A business landscape always consists of some risks that are to be solved. Business organizations have to deal with external and internal risks that can affect the ROI (Return on Investment). The same applies to the investment banking and finance sector. Banks have to mitigate several risks to boost their growth and ROI. It is why banks look for risk management experts that can help them operate smoothly.

Many young graduates are looking for risk management courses that can help them get into the industry. Continue reading to know why risk management courses are gaining popularity in 2022.

Risk management in investment banking

Risk management is one of the core functions in the investment banking industry. Before an investment, banks have to analyze the risks associated with the investment. If an investment opportunity possesses several risks, it can be challenging to go on without eliminating them.

If investment banks do not address the risks proactively, they might experience a significant decline in ROI and market reputation. Risks can be of many types depending on the market, internal organization, etc. Anything that can leave a negative impact on the bank can be considered a risk.

Risk management is a continual process that requires daily effort. Global investment banking is having trouble finding risk management experts that could work proactively. It is why investment banks are looking for highly skilled individuals that can forecast risks and mitigate them proactively. Young graduates and investment bankers are looking for risk management courses that could teach them industry skills.

Why risk management is necessary for investment banks?

You must have heard about the market disruptions caused by the recent COVID pandemic. Finance firms that could not address the challenges of the COVID pandemic failed to survive. Banks and financial institutions should include risk management strategies into their day-to-day operations.

Investment banks focus on risks that could make them lose securities or money. Banks also assess risks so that their clients may not face loss. It is impossible to survive in the current scenario without addressing the risks proactively.

Types of risks encountered in the finance sector

Finance firms have to tackle several risks that could hamper their ROI and reputation. Some common types of risks that should be managed are as follows:

Market risks

Market/macro risks arise due to changes/disruptions in the market. For example, investment banks are affected by the inflation rate, interest rate fluctuation, exchange rate fluctuation, and several other factors. Market factors should be closely monitored by the investment banks to discover potential risks.

Liquidity risks

If an investment bank fails to sell securities at a profitable price, it could encounter a loss. Due to liquidity changes in the market, investment banks might face challenges while selling/buying securities.

External risks

Banks and financial institutions have to deal with fraud and credit risks. If a client cannot fulfill their promise, the reputation of the banks is at stake. Reinvestment risks, horizon risks, and many other risks fall under the category of external risks.

How to learn more about risk management in 2022?

Considering the current scenario of the COVID pandemic, it is better to learn risk management via an online course. We at Imarticus Learning offer a unique risk management course that could make you job-ready. Our CIBOP course deals with several aspects of risks management in the industry.

The industry-endorsed CIBOP program is also backed by the London Stock Exchange. With an industry-recognized certification, you can find a job with any premier investment bank. You will also receive placement support from us during the CIBOP program. Start learning risk management in banking with the CIBOP course now!