Financial modelling analyst

Alternative job titles for this role

• Forecast modelling
• Financial analyst
• Financial modelling and optimisation analyst
• Quantitative finance analyst

Introduction

Financial modelling involves building conceptual models of a business or an investment product so that an analyst can then calculate, forecast or estimate financial numbers. These models can range from simple formulae to complex computer programs such as those for a Discounted Cash Flow (DCF) model or Value-at-Risk (VAR) models. Modelling is used across a variety of financial and business areas including forecasting future raw material needs, calculating the valuation of a security or the benefits of a merger or to check the size of the market opportunity and to quantify and predict risk.

What the job involves

• Gather information about the business or product or issue
• Analyse and identify data requirements – what data will you need to complete the model?
• Work with others to identify essential but missing information
• Develop complex financial models for global investors and evaluate their portfolio.
• Use software to develop complex models to make up library models
• Identify bugs
• Prepare annual valuation of a company’s stock and perform audit
• Prepare financial forecasts solutions and present them to management

How your career can develop

Experience is the biggest factor in career advancement, though many in the world of financial modelling also pursue postgraduate qualifications.

Skills

• Excellent maths skills
• IT skills
• Analytical skills
• Interpersonal skills
• Teamworking skills
• Able to use complex modelling techniques
• Ability to communicate ideas via reports and presentations, outlining findings and making recommendations

Typical employers

• Financial houses
• Investment banks
• Exchanges such as the Irish Stock Exchange
• Treasury departments of major companies
• Hedge funds

Typical salary

• Graduate/Starting €37,000
• Senior/Potential €80,000

Typical qualifications

A bachelor’s degree in financial mathematics or diploma in financial planning is required. Other gateway degrees include business courses and maths related courses.