When it comes to the domain of finance, professionals have a lot of options, career-wise, like financial analysis, business analysis, data science, financial risk management, foreign exchange risk management, investment advisory, chartered accountancy, and whatnot. With a plethora of options, it becomes challenging to choose which career path is a better option, unless you have already your eyes on one, which rarely is the case.

Let’s take the two most popular, lucrative, and highly in-demand career options – financial risk management and financial analysis, and see which one is a better option.

Financial Analysis as a Career Path

If you choose to go down the financial analysis career path, you’ll be responsible for gathering, crunching, and analysing all sorts of financial data, both macro as well as microeconomic. Additionally, you’ll also be responsible for sorting out and providing insights into market-related data which will help your organisation make the best, most rewarding investment decisions. By looking at your company’s financial health, you’ll also be responsible for recommending action, such as buying or selling stocks, devising financial models to predict economic conditions, valuation of company’s mergers and acquisitions, etc.

Also Read: How to Make a Career in Financial Risk Management?

Financial Risk Management as a Career Path

Financial risk managers are responsible for managing and overseeing the daily functioning of a business and realising the potential strategies that could mitigate the risks and maximise the rewards. As a financial risk manager, you’ll also be responsible for approving potential projects or investments that are going to be undertaken by your organisation based on its risks and rewards ratio.

To gain in-depth knowledge and understand the nuances of financial risk management and financial analysis, consider pursuing online finance certification courses. These online finance certification courses can expose you to all facets of finance so you can decide as to which career option you want to choose.

Financial Analysis vs Financial Risk Management: Career Path Differences

Financial analysts are typically more in demand than financial risk managers because their studies and skills are broader in scope, especially in managerial and high-level positions. Financial analysts specialise in managing and maximising a firm’s investment, which can be a wider net, career-wise.

Financial analysts typically work with data companies, investment banks, corporate finance firms, doing research, data analysis, portfolio management, etc. On the other hand, financial risk managers are more specialised in analysing risk and figuring out ways to mitigate it within a company.

Educational Requirements for Financial Risk Manager and Financial Analyst

For both the fields, there are a specific set of educational requirements you need to fulfil to gain even an entry-level job. For instance, whether you aspire to become a financial analyst or a financial risk manager, you need a bachelor’s degree from a commerce background. Further, you need to pursue a master’s program or relevant online finance certification courses which will help you land a high-paying job. Professionals who aspire to grow into senior roles within risk and compliance, or are seeking to gain structured knowledge of this domain must consider to enrol themselves into credible online finance certification courses.

One such course that boasts quality and up-to-date content is the online AFRM course from IIM Raipur. Offered on the Talentedge platform, the online AFRM course from IIM Raipur is ideal for financial & banking professionals as well as risk management professionals looking to hone their skills and knowledge.

Also Read: The A-Z of Building a Career in Financial Risk Management

Finance Risk Manager vs Financial Analyst: Which one is Better?

Both designations have their own attributes and are respected internationally. Both financial risk management and financial analysis are supplicated finance functions; thus, neither one is better than the other. They are merely different.

For instance, if you are more inclined to work in corporate finance, accounting, portfolio management or equity investment, financial analysis is the right choice for you. However, if you’d prefer working as a credit risk analyst, operational risk analyst, or performing quantitative analysis, financial risk management is the ideal career choice.

Bottom Line

It’s not a matter of which one is better; it’s a matter of which one you are interested in and what you think is better for you.

To gain in-depth knowledge about these domains, consider pursuing online finance certification courses. Online AFRM course from IIM Raipur is ideal for professionals aspiring to excel in financial risk management and an online financial analytics course, offered on Talentedge, is the perfect choice for professionals considering a career in financial analysis.

More Information:

Embarking on a Successful Career in Finance

Lucrative Job Options In The Financial Sector

Advanced Skills Required to Become a Financial Manager

How basic financial skills can boost your career prospects?

Financial Risk Management Course Online by IIM Kozhikode

Role & Importance of Financial Management in a Business Organizaton