If that interests you, asset liability management is where you need to be. Call them what you want; asset security managers, directors of asset location or risk measurement analysts, they all accomplish the same thing — Keeping their companies in the black. In asset liability management, you’ll sweat over balance sheets, lose sleep over budget reports, and fret about your estimates on future earnings and expenses. And you’ll have to do this all within the company guidelines. The rewards for those who are successful, however, come in the form of high annual salaries, huge bonuses, and flexible working environments.
It seems daunting, but corporate assets managed wisely can keep a company lean and mean, while mismanagement of those same assets can send a company into a catastrophic tumble from which they may never recover.
Poor risk management (along with de-regulation of our financial organizations) will forever echo as the reason for the 2008 financial slump. More than ever, banking institutions and large corporations will need competent resources to manage risk for them. With the federal government and everyday Joe’s casting a wary eye at the banking industry and ''evil corporations'', integrity, prudence, and communication will be highly valued in a potential asset liability management candidate. It's the perfect opportunity to get in there and show your stuff!
Asset liability management alludes to banking institutions when they take on liabilities such as deposits and life insurance policies and then invests them in loans or real estate. Yet every type of business requires a certain degree of financial risk management, so more and more corporations are utilizing asset liability management techniques. This has created immense versatility for job selection in the financial market. Insurance companies, commercial banks, large corporations, newspaper publishers, and even baseball teams all pay well to have someone manage their assets shrewdly. Many of these positions are contracted out through larger firms that specialize in asset liability management.
And as more companies take on asset liability management techniques, job titles become more specialized to fit company needs. At the highest level, there may be a chief financial officer, or treasurer. At the mid-levels there may be cash managers, credit managers, or market risk managers, and those in the trenches can assume many monikers that fall under asset liability management: student loan manager, treasurer, bank examiner, risk consultant, and mortgage analyst are just a few. Globalization gives those with asset liability management skills the opportunity to work on mergers and consolidations where knowledge of global economics and finance is necessary.
Although asset liability management is a competitive field, it is one that shows high growth (34% between 2006 and 2016) and high stability. As globalization takes hold, every new business will need financial expertise, and the businesses with the best financial analysts will be the ones to succeed. On average, you can earn $66,000 annually and upwards of $135,000, with the highest paid positions residing in securities and commodity contracts intermediation. For those of you who are exceedingly competitive, you’ll be happy to know that bonuses are a big part of the picture in asset liability management based, of course, on how accurate your financial predictions are.
You can get started in the asset liability management field with finance or accounting degree and a good knowledge of the current financial environment. With a master’s degree in the field the sky is the limit. It is also encouraged that you obtain a Chartered Financial Analyst (CFA) designation or Certified Financial Planner (CFP) certification. As technology matures, more and more financial analysts are spending time analyzing data to maximize profits, so those with good computer skills are sure to get ahead. Problem solving skills are essential. The ability to act responsibly and to adhere to good practices should be natural to any potential candidate. Because the processes surrounding the assets of a company need to be coordinated, excellent written and oral communication skills are golden assets.
Dedication to continued education in the field of Aasset liability management is necessary because of constant changes in federal and state law and the nuances of global trade. Employees are encouraged to attend seminars, conferences, and sometimes even advanced college courses. Most large companies and firms are willing to pay for some or all of an employee’s education, because they know that having a strong financial core is paramount. Advancement is possible through education, but most large promotions come to those who show leadership and initiative and who leverage their experience to bring vast profitability to their company.
Asset liability management is not for the faint of heart and not for those who aren’t willing to work hard. You will work long, but rewarding hours. You will be forced to make monstrous decisions that would leave many pale and uncertain. You must be able to look up at that terrible beast that is a company’s financial position and wrestle it until it is tame and compliant and profitable.
Embark upon this challenging path and enter one of the most versatile, rewarding fields available in the job market today.
