Discipline Investigation

In this interview for my community discourse, my preferred field is in economics profession with specific regards to the financial analysts’ profession. The main role of financial analysts is to provide guidance to individuals and businesses to make the best-informed decisions concerning investments. This meets my passion since it is my field of interest. Since I major in economics, it was of special significance to me as it illuminates my future professional path and, in the process, shapes my expectation and clears any uncertainty concerning economics as a profession.

I interviewed Mr. Kelvin Scott, an economist specializing in financial analysis and working with BBVA Compass Bank as the chief financial analyst. This interview was to shed light and address the roles and the responsibilities of a financial analyst. This gives a broader view and a realistic approach in this field. This report provides a comprehensive coverage of the interview proceedings. At first, Mr. Scott gives a background of his life and career path and also highlights what his professional entails. We conclude the interview with the key points and their impacts in the field community.  Before the interview kicked off I had to assure Mr. Scott that any information that he shared and did not want it to be known to the outside world because it is sensitive will not be used. With this in mind, Mr. Scott was ready to share his life experiences and gave ago ahead of his information usage provided the information is used good faith.

Background and career path

Mr. Scott is a Ph.D. holder in Financial Analysis from Harvard University School of Business. Having excelled in Bachelor of mathematics from Hawaii University, he developed passion in economics and particularly financial analysis at the macroeconomic level. Due to the global economic crisis in the early 1990’s, Mr. Scott developed the interest in the integration of his Mathematical prowess in solving the financial related economic down-runs. Due to his passion in the field, he gained perfect scores in both mathematics and mathematics-related courses. This was not achieved easily as there were key role models that inspire Mr. Scott in his endeavors. They included Keynes who was an English economist who was a professional in economics and who invested heavily in mathematics (Killick, 2010).

During his early years in Hawaii, Scott met and interacted with several successful economists working in different financial institutions who advised him to consider a profession in economics. He later joined Harvard University. After his undergraduate degree in economics, he enrolled for Masters in Financial Analysis and later did a Ph.D. in financial analysis for banking institution that saw him climb the professional ladder to the position of Chief Financial Analysts at Compass Bank (Killick, 2010).

To conclude with his long twisted career path, Mr. Scott confirms that the mainstay of Economics is mathematics. He had experienced interesting and fulfilling moment due to his unshakable Mathematics background. Additionally, one must have advanced aptitude with an outstanding interest in the details (Wei et al, 2010). He further added that in order to be successful one must, meet all the requirements and have the skills that will enable an individual to have a great satisfaction in their life. Passion is needed in this field because a lot is at stake and devotion is required in this field. One has to explore and be willing to learn more in order to manage the changing markets dynamics. Since financial analysis involves both analysis and future projections, one must equip himself with a proficient grip of Calculus, statistics and other advanced levels mathematics (Killick, 2010). He further said that in order to be successful in this field one must address each issue in the long term perspective take into consideration its volatility and also give the suitable recommendation to the public and other investors to facilitate their decision making and impact them positively.

It was also notable to ask Mr. Scott about the expectation he had when he was pursuing his career. Mr. Scott did confirm that he was full of expectation and though that once he had attained the knowledge through learning he world achieve it all. He expected to introduce revolutionary and highly effective models that would protect banks and other financial institutions from any economic depression or uncertainty that results from the high dynamics and unpredictable economic element (Killick, 2010).

He also expected a fulfilling profession that will not only provide him an opportunity to grow intellectually but also an opportunity to positively contribute the economic stability course in the US. As he confirmed, working as a financial analyst is a daunting as one has the power to influence the future discounted cash flow and the profitability of any company or economy as a whole. With this great success and expectations, there come daily challenges and surprises but were not going to deter him from expecting to perform and achieve more (Killick, 2010).

As it is not always perfect Mr. Scott got his fair share of surprises. When entering in this career he knew it was an easy task but he never knew he was going to be a victim of a big surprise that was going to shake his career. The most memorable one is the financial meltdown that was experienced in the US and also globally between 2007 and 2009. The surprise had a great impact since he had the experience and the expertise but he was caught unawares (Britton, 2013). This lead to a great fall in the profit margins in Compass Bank where he was an employee placing his job in jeopardy. This made his career and profession more challenging due to the instability in the economy and how unpredictable Marco-economics became (Killick, 2010). This was a major blow in his entire career. He also aspired to build a winning portfolio by making a smarter investment decision and staying informed with the latest market movements. This was not achievable due to the volatility of the market and its sensitivity.

Roles and responsibilities

Financial Analysts have numerous roles and responsibilities in any given financial institution. These activities range from bookkeeping to providing reliable relevant, accurate and timely financial information in various financial information in order to assist the management in strategic decision making. This involves changing the information into the financial analysis (Killick, 2010).

Mr. Scott affirmed that his responsibilities include consolidating and analyzing budgets, income forecast statement and any other financial data taking into consideration the financial standings and the company goals (Wei et al, 2010). He is also faced with the responsibility of providing creative alternatives and giving recommendations that will reduce cost and improve financial performance. Assembling summarizing the data to give reports based on the financial risks and status is also his responsibility.  It is also expected of him to develop financial models, process analysis and conduct benchmarking. They are also faced with the responsibility of conducting past studies of the business, the present and the future performing comparative performance and also develop forecast models (Killick, 2010).

Financial analysts like Mr. Scott identify the company trends and advice accordingly on the best course of action to be taken. It is also his responsibility to determine financial status and their track by a way of analyzing the actual results with the forecast (Killick, 2010). They also reconcile transaction through comparison of the correct data. He further stressed out that financial analysts are expected to gain and update their knowledge in order to remain relevant and informed of the novelty in the field. Consultation with the management is expected of them in order to provide guidance influence positively the long term and strategic decision within the scope (Killick, 2010). They also drive the improvement and development process that will impact any given financial function. On a daily basis, Mr. Scott is expected to meet with the management in order to have the knowledge and the grip of the financial prospect. It is also expected that corporation with the management will create an opportunity of addressing specific financial concerns in an entity (Wei et al, 2010).

The subject job in the economics specifically in financial analyst is well address in the overall structure of Mr. Scott profession. There is a clear outlay of the responsibilities of Mr. Scott in his profession that addresses what is involved in being a financial analyst. In this profession, the jobs include a wide range of being a research analyst, security analyst, equity analyst, rating analyst and investment analyst (Wei et al, 2010). When undertaking this profession one can major in either since they all perform financial duties either internally or externally (Killick, 2010).

To achieve financial analyst as a profession then one must have the right skills for the job. This will assist one to move on the corporate ladder more efficiently and rapidly (Britton, 2013). Strategically minded people are best fit with the ability to deliver actionably and data drove conclusion which will lead to cost saving, greater efficiency and impacting the bottom line ultimately. Qualifications of data analysis skills will give an understanding of the ramifications of the changing patterns (Killick, 2010). Information technology skill such as cloud migration, privacy, and data security will steer forward the process of becoming a financial analyst. One has to be social, artistic, conventional, enterprising, investigative and realistic in order to be an analyst who can have an impact on the people. Critical thinking capability, complex problem-solving ability, persuasive to change others mind will make one to be the best financial analyst (Killick, 2010).

The biggest challenge in this subject is the demand for sound knowledge and stout skills both oral and written. It is challenging because critical thinking and various investigations have to be carried out due to the problems associated with the business. This profession requires hard work; the responsibilities involved are heavy which requires devotion in order to achieve the profession successfully (Britton, 2013).

Communication skills

As Mr. Scott asserted, economics and particularly financial analysis involves lots of communication in the form of reading and writing. The most common readings are those concerning the future and current economic trends that affect or may affect the business operation in the future (Wei et al, 2010). The analyst must also read and stay updated with the current company’s financial status with an aim of accurately projecting the future from the current data. Principally, an analyst must have a comprehensive understanding of the business and economic statistics that can directly aid in the process of evaluation and understanding a company’s financial position (Britton, 2013). It provides a formal means of communication between the financial analysts and the stakeholders as well as top management. The financial analysis must also write down their ultimate projections and observation and timely communicate with concerned parties in the company (Killick, 2010).

Digital and Email Communication is the most important form of communication for a financial analyst as Scott confirmed. Due to the existence of large data and the need to analyze every bit of the data with utmost accuracy, utilization of digital communication is the most appropriate. It is easy, flexible and in most case cost effective. It also enables for timely feedback that ensures timely decisions in the process ( Killick, 2010).

Conclusion

From the direct interaction with Mr. Scott, I have much to reflect on concerning economics as a profession and especially in financial analysis and modeling. I realized from the interview that economics as the profession is much more challenging that I first perceived it. The key to success in the economics profession discourse community requires a combination of different skills and personal virtues that include the ability to anticipate face and solve different challenges in the profession and the discourse.

The main surprise is the massive nature of economics as a profession and wide array of opportunities that presents to individuals with economics knowledge. However, the challenge that comes with the profession is also astonishing. These require both professional and life skills to handle effectively.

 

From the interview, I believe that the best preparation for economics as a profession is equipping oneself with advanced mathematics skills. Economics revolves around the use of mathematical models. With an adequate grip of Math and passion, one can easily succeed in economics. To develop oneself, there is the need for continuous learning and specialization in an area of one’s interest. Culturing the economics micro-skills is essential for life-long development in economics.

 

 

 

 

 

 

 

 

 

 Reference

 

Britton, J. J. (2013). From one to many: Best practices for team and group coaching. (From One to Many.) Hoboken, NJ: Wiley.

Killick, T. (2010). Development Economics in Action Second Edition: A Study of Economic Policies in Ghana. Routledge.

Wei, Ruth Chung, Linda Darling-Hammond, and Frank Adamson (2010). "Professional development in the United States: Trends and challenges."Dallas, TX: National Staff Development Council 28