Corporate Finance by benbenzhou


									Corporate Finance Overview
Corporate Finance – Middle Office (Ops)
 •   Function (depending on Bank)
      o Sales Support
            Make clients happy
            Work with Front Office Sales & Trading to deliver client-specific solutions
            Resolve issues (such as payment discrepancies)
      o   Trade Support
              Validate trading strategies & compliance
              Book trades and guarantee proper operations flow
              Validate that risk and cash are in line
              Calculate & verify payments to cpty’s
      o   Trade Validation & Settlements
            Ensure booked trades reflect confirms
            Get cash & pay counterparties

 •   Benefits
      o Interact with clients, take part in creating the face of the bank
      o Understand client & market needs
      o T+0

 •   Downside
      o Early & Longer hours (similar to FO but less pay)
      o Very demanding (due to regulations & trade flow)
Corporate Finance – Product Control
 •   Function
      o Count the money; make sure General Ledger is accurate
      o Responsible for timely and accurate P&L reporting, financial reporting to
      o CONTROL – see all sides of the trade
      o P&L explanation to management
      o Forecasting, budgeting, variance reporting
      o Analyze business needs and work with FO to decrease costs

 •   Benefits
      o Best place to learn about the whole trade life cycle
      o Add value, while at the same time have a work/life balance

 •   Downside
      o T+1
      o Month Ends
      o Reconciliations
Corporate Finance – Independent
 • Function
      o   Ensure Balance Sheet is accurate (especially post SOX)
      o   Re-value all the positions held by the bank
      o   Propose reserves and adjustments to P&L and Balance Sheet
      o   Work directly with the FO on potential trades as well as valuation concerns
      o   Report directly to senior management
      o   Asset Leveling

 •   Benefits
      o Analyze complex trades, constant learning
      o Limited daily tasks, continuous improvement model
      o Direct impact to P&L

 •   Downside
      o High responsibility
      o Frequent confrontation
Corporate Finance – Internal Audit
 •   Function
      o Part of Every large company & all Banks
      o Independent & Objective
      o Study, evaluate & implement internal controls
      o Identify and manage all risks (business, operational & technology)
      o Enhance the business lines through process improvement and monitoring
      o Report gaps and risks directly to top mgmt
      o Ensure compliance with all regulations and governing bodies globally
      o Internal consulting

 •   Benefits
      o See the business front to back
      o Flexibility to learn across business lines
      o Implement effective risk controls
      o Add value through Corporate Governance

 •   Downside
      o Everyone hates you
Corporate Finance Overview
Who am I?
 Diana Terranova
    o   Metropolitan Life Insurance Company
    o   Dartmouth College: psychology major
    o   BU: MBA program

 My Career Progression
    o   Junior Programmer Trainee
    o   Programmer
    o   Systems Analyst
    o   Project Leader
    o   Business Consulting Manager
What do I do?
 Business Consulting Manager
    o   Works in the Life Insurance Product Management department
    o   Uses data to assist MetLife in making business decisions
    o   Analyzes life insurance data to determine trends & profits
    o   Reports on data using Excel, Word, PowerPoint
    o   Uses SQL, Access, Micro Strategy
    o   Liaison between IT and Business
Sample Departments in an Insurance Company
 •   Financial Management Group
             Corporate Mergers & Acquisitions
             Corporate Treasury
             Financial Reporting, Accounting, Controllers & Tax
             Risk Management
 •   Human Resources
 •   International
 •   Individual Business
 •   Institutional
 •   Investments
 •   Legal Affairs
 •   Marketing
 •   Technology & Operations
 •   Auto & Home
 •   Bank
Sample Positions at Insurance Firm
 •   Financial analyst
 •   Financial services representative
 •   Accountant
 •   Accounts payable
 •   Fund manager
 •   Claims analyst
 •   Systems analyst
 •   Business analyst
 •   Product manager
 •   Project manager
The Actuary Profession
 How do you become an actuary?
 •   Casualty Actuarial Society & Society of Actuaries
 •   Associate (ASA) & Fellow (FSA)
 •   5-7 exams (offered pre & post college) plus coursework
 How do you get hired?
 •   Pass one or more exams
 •   Paid study time for students
 •   Formal rotational programs
 •   Well-paid
 •   Not a glamorous job
 •   Rigorous exams
Actuary Websites
 • Actuarial career site:

 • List of the actuarial exams:
Job searches
 •   Network
           Build relationships with everyone, including your classmates and other BU alumni
 •   Intern
 •   Focus on industry of interest
 •   Be willing to travel or commute
 •   Job fairs
 •   Websites: Facebook, Linked In
 •   Further your education
           Graduate degrees and certifications
           You will always have your degrees. You may not always have a job.
           Specialize in subjects, if there is a demand for that type of job
MetLife Career Center


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