The types of jobs in financial economics are usually related to research and analysis of market conditions, technical trends and fiscal behaviors. Financial economics is a unique sub-field of economics that analyzes how resources are used and distributed in risky situations, uncertain conditions and unfamiliar markets, according to Investopedia. These financial decisions often consider future risks, events and possibilities.
Business Analytics
Business analytics involve fast-paced and evolving environments that deliver data driven recommendations. Business analysts work in close partnership with internal IT, finance, marketing staff to design and deliver various projects. They produce complex analysis that provides insights into consumer behaviors, market opportunities, competitor activities and departmental performances. Business analysts produce analytical improvements by fine tuning their data gathering, collection and processing techniques. They work in close collaboration with IT partners to leverage data management, advanced modeling and metric scoring capabilities. They may participate in the implementation and interpretation of data experiments to perfect testing approaches, statistical concepts and continuous improvement goals.
Financial Analytics
Financial analysts are individual contributors who play the role of subject matter experts. They are independent team members who drive critical thinking among coworkers and management discussions with multiple stakeholders across the business spectrum. They should be able to independently produce data content with minimal supervision. Financial analysts regularly review and analyze information on ongoing processes and projects across various departments. They collaborate with peers and partners to create content that will be presented to program leadership. They promote the changing role of analytics in decision making, which moves it from a decision support role to a decision guidance role. Financial analysts may work in accounting departments in corporations, or they may work in government agencies that monitor economic health.
Data Science
Data scientists who deal with financial economics perform various duties. They develop strong relationships with business partners and build strong cross-functional relationships with leadership. They conduct needs assessments, maturity evaluations and functional benchmarks. Data scientists continually broaden their knowledge of analytical method by communicating with vendors, experimenting with new tools and attending professional conferences. Data scientists prepare presentations and associated documentation of complex statistical concepts and research. They often share their results with non-statistical audiences and non-technical stakeholders. Data scientists often perform peer reviews of other data research and analytics projects.
Risk Forecasting
Risk forecasters may be credit and portfolio analysts who predict credit losses and other risk inputs for investment decisions, new accounts and capital acquisitions. These risk components are critical for financial decisions, vulnerability assessments and risk management frameworks. These professionals are responsible for generating insights for marketing, product, investment and operational decisions. They work with finance managers to create comprehensive strategy overviews and portfolio reviews with senior leaders. They partner with managers to analyze changes in portfolio performance based on policy, product and targeting variations. They produce acquisition impacts, loss forecasting and overall performance reports.
Related Resource: What is Risk Management in Finance?
All types of jobs in financial economics require excellent analytic and quantitative skills. Financial economists must have the ability to derive patterns, recognize trends, produce insights and provide recommendations. They should know how to forecast possibilities for new acquisitions, measure campaigns against frameworks and evaluate opportunities for enhancements.
