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Financial ServicesISCO 2413

Financial analyst

A financial analyst is a person who carries out economic research and produces analyses of financial questions such as profitability, liquidity, solvency and asset management, then makes recommendations for the decisions that follow from them.

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Check yourself in a minute: financial analyst

Rate 5 of the 23 essential skills of this occupation (European ESCO data). No account needed.

digital data processing

perform business research

perform business analysis

use business simulation tools

interpret financial statements

About financial analyst

The analyst draws up financial statements, reads the ones a company has published, and uses statistics to separate a trend from a single bad quarter. The analyst uses fundamental analysis: working from revenues, costs, debt and cash flow towards what a business is worth rather than what it is priced at. Business analytics links the financial figures to operational data, so that a margin can be traced to what happens in the business.

The analyst considers economic criteria in every decision supported, which means naming the assumptions behind a recommendation and what would have to be true for it to hold.

Financial analysts work in both the public and the private sector, and the questions differ: a public body asks whether a programme is affordable and justified, an investor asks what a position returns. Knowledge of economics and of investment banking is applied where financing, valuation and transactions are involved, and financial services are offered on the basis of the analysis. Formal requirements are set by the employer and by national rules on financial advice.

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Core competency requirements inferred from the occupation's skill profile. Take the free assessment to see how you match.

Must-Have Skills (Advanced)

Problem SolvingAdvanced

Supporting Skills

CommunicationIntermediate
Decision MakingIntermediate
Sense MakingIntermediate
Digital FluencyIntermediate
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European Skills Framework

Skills and knowledge areas required for this occupation based on European classification.

Essential (23)

digital data processingdigital data processingIdentify, locate, retrieve, store, organise and analyse digital information, judging its relevance and purpose.investment bankinginvestment bankingThe branch of banking that provides services of capital raising and mergers and acquisitions (M&A).financial managementfinancial managementThe field of finance that concerns the practical process analysis and tools for designating financial resources. It encompasses the structure of businesses, the investment sources, and the value incre...quantitative analysisquantitative analysisThe technique of employing statistical and mathematical modelling and measurement to represent a specific reality through numbers.microeconomicsmicroeconomicsThe economic field that studies the behaviour and interactions between specific actors of the economy, namely consumers and firms. It is the field that analyses the decision-making process of individu...statisticsstatisticsThe study of statistical theory, methods and practices such as collection, organisation, analysis, interpretation and presentation of data. It deals with all aspects of data including the planning of ...economicseconomicsEconomic principles and practices, financial and commodity markets, banking and the analysis of financial data.business analyticsbusiness analyticsThe disciplines and technologies for solving business problems through employing quantitative methods such as data analysis and statistical models.fundamental analysisfundamental analysisThe techniques for measuring the intrinsic value of a financial security through the assessment its economic and financial factors. It combines together the analysis of macroeconomic trends and of fin...business processesbusiness processesProcesses which an organisation applies to improve efficiency, set new objectives and reach goals in a profitable and timely manner.asset managementasset managementThe process of increasing total wealth over time through investments that have potential to grow in value.macroeconomicsmacroeconomicsThe economic field that studies the performance and behaviour of all the sectors of an economy aggregated. This field evaluates the financial performance of a country and considers indicator such as g...accountingaccountingThe documentation and processing of data regarding financial activities.empirical analysisempirical analysisThe evidence-based method that is used to analyse and interpret information with the aim of drawing conclusions about a specific issue.perform business researchperform business researchSearch and collect information relevant for the development of businesses in different fields ranging from legal, accounting, finance, up to commercial matters.perform business analysisperform business analysisEvaluate the condition of a business on its own and in relation to the competitive business domain, performing research, placing data in context of the business' needs and determining areas of opportu...use business simulation toolsuse business simulation toolsEmploy software to perform simulations to improve business skills such as business acumen, financial and market analysis and decision making.interpret financial statementsinterpret financial statementsRead, understand, and interpret the key lines and indicators in financial statements. Extract the most important information from financial statements depending on the needs and integrate this informa...advise on financial mattersadvise on financial mattersConsult, advise, and propose solutions with regards to financial management such as acquiring new assets, incurring in investments, and tax efficiency methods.prepare financial projectionsprepare financial projectionsGather financial data, exert analyses, and come up with financial projections for small and big businesses.consider economic criteria in decision makingconsider economic criteria in decision makingDevelop proposals and take appropriate decisions taking into account economic criteria.create a financial reportcreate a financial reportFinalise project accounting. Prepare an actual budget, compare the discrepancy between the planned and actual budget, and draw final conclusions.offer financial servicesoffer financial servicesProvide a broad range of financial services to clients such as assistance with financial products, financial planning, insurances, money and investment management.
Optional (24) — show
mergers and acquisitionsmergers and acquisitionsThe process of joining together separate companies and relatively equal in size, and the purchase of a smaller company by a bigger one. The financial deals, the legal implications, and the consolidati...financial productsfinancial productsThe different types of instruments that apply to the management of cash flow that are available on the market, such as shares, bonds, options or funds.treasury management systemtreasury management systemThe system for managing treasury processes by centralizing cash flow data linked to treasury operations. It involves managing the liquidity as well as money market instruments of an organisation.sustainable financesustainable financeThe process of integrating environmental, social and governance (ESG) considerations when making business or investment decisions, leading to increased longer-term investments into sustainable economi...financial forecastingfinancial forecastingThe tool used in performing fiscal financial management to identify revenue trends and estimated financial conditions.cost managementcost managementThe process of planning, monitoring and adjusting the expenses and revenues of a business in order to achieve cost efficiency and capability.green bondsgreen bondsThe financial instruments traded in financial markets that aim at raising capitals for projects with specific environmental benefits.game theorygame theoryThe study of mathematical models of strategic decisions among stakeholders. It has applications in all fields of social science, as well as in systems science, computer science and logic. Essential co...stock marketstock marketThe market in which shares of publicly held companies are issued and traded.management consultingmanagement consultingThe process of giving paid advice with the aim of improving businesses performance and promote their growth.public offeringpublic offeringThe elements comprised in public offerings of companies in the stock market such as determining the initial public offering (IPO), the type of security, and the timing to launch it in the market.explain financial jargonexplain financial jargonExplain all details of financial products in plain words to clients, including financial terms and all costs.advise on tax planningadvise on tax planningAdvise on appropriate strategies to include taxes in the overall financial plan in order to reduce the tax load. Advise on questions related to tax legislation and provide advise on the possible impli...develop investment portfoliodevelop investment portfolioCreate an investment portfolio for a customer that includes an insurance policy or multiple policies to cover specific risks, such as financial risks, assistance, reinsurance, industrial risks or natu...provide cost benefit analysis reportsprovide cost benefit analysis reportsPrepare, compile and communicate reports with broken down cost analysis on the proposal and budget plans of the company. Analyse the financial or social costs and benefits of a project or investment i...create a financial plancreate a financial planDevelop a financial plan according to financial and client regulations, including an investor profile, financial advice, and negotiation and transaction plans.handle mergers and acquisitionshandle mergers and acquisitionsHandle the negotiation of financial deals and the legal implications involved in the purchase of a company by another or in the merging to separate companies.analyse financial performance of a companyanalyse financial performance of a companyAnalyse the performance of the company in financial matters in order to identify improvement actions that could increase profit, based on accounts, records, financial statements and external informati...develop transportation cost metricsdevelop transportation cost metricsKnow various routing protocols to calculate itineraries. Compare different possible routes and determine the most efficient one. Understand topological and link-state databases.monitor stock marketmonitor stock marketObserve and analyse the stock market and its trends on a daily basis to gather up-to-date information in order to develop investment strategies.monitor loan portfoliomonitor loan portfolioControl the ongoing credit commitments in order to detect anomalies related to the schedules, refinancing, approval limits etc., and to identify improper disbursements.ensure compliance with disclosure criteria of accounting informationensure compliance with disclosure criteria of accounting informationRevise the accounting information of the company to make sure it meets the commonly agreed criteria for its disclosure such as understandability, relevance, consistency, comparability, reliability, an...assess financial viabilityassess financial viabilityRevise and analyse financial information and requirements of projects such as their budget appraisal, expected turnover, and risk assessment for determining the benefits and costs of the project. Asse...analyse financial riskanalyse financial riskIdentify and analyse risks that could impact an organisation or individual financially, such as credit and market risks, and propose solutions to cover against those risks.

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Frequently asked questions

What does a financial analyst do?

Financial analysts conduct economic research and elicit valuable analyses on financial matters such as profitability, liquidity, solvency, and asset management. They provide recommendations on financial matters for decision-making processes. Financial analysts work in both the public and the private sector.

What skills does a financial analyst need?

A financial analyst needs 23 essential skills, including digital data processing, investment banking, financial management, quantitative analysis, microeconomics.

Will AI replace financial analyst jobs?

The AI disruption score for financial analyst is 57/100 (high risk). Skills most exposed to automation: accounting, provide cost benefit analysis reports, monitor loan portfolio. Most resilient: handle mergers and acquisitions, game theory, macroeconomics.

AI Replacement Risk

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Quick Facts

SectorFinancial Services
ISCO GroupBusiness and administration professionals
Essential Skills23
Core Skills5

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