job description

I'm the vice president of risk management at a major financial institution. My division focuses on credit cards. We have partnership cards with other companies including major department stores and home improvement depots. We support at least 30 different types of cards. VP is my title, but risk management is my subgroup.

Well, before I start explaining risk management, I'll briefly explain the importance of credit scores in the financial world. On average, most people have good credit scores, which means that there is a high possibility of getting our money back. But people with subprime loans are people without great credit scores who tend to default when the market is not doing well. Instead of loans, we look at credit cards and how much people are not paying back. I make recommendations to management based on different factors such as the current economy, spending patterns, oil patterns and the current attitude of clients. For instance, I'm sure you are aware that recently, at many banks, stocks have plummeted due to losses in the subprime market. As a result, many people are losing their jobs. Investors demand this information, and since we are a public company, we are heavily regulated by federal bodies, such as the US Securities and Exchange Commission (SEC.) Although it is not an exact science, an accurate measure of risk can be predicted at high rates. We anticipate the exact amount that we believe people will default on will not pay back and write off the asset and record the losses on our financial statements. This is risk management.

Yes, reviews are conducted on a quarterly basis [four times a year], but the final judgment is at the end of the quarter. You would be surprised at how often these reviews can fluctuate depending on different situations, from natural disasters, to political events, to new inventions and anything else that happens in the world. So you can say that we continually update the review depending on the situation at hand.

Well, the people I work with normally have similar backgrounds. When I say similar backgrounds, I mean that they usually are well versed in the happenings of the financial market. They are also often business or statistic majors. Because of this, we speak the same language, so our interactions are quite friendly, unless there's a lot of stress, such as the time near the end of a quarter.

Business attire is necessary for all positions in the financial world. This is the bare minimum. Students interested in the business world should expect this and understand that business attire is important not only because it is professional, but because it shows your employers and clients that you respect them. Besides, first impressions are often of key importance during an interview.

I spend most of my time in the office, and this was true until recently. This is typical of my profession because we need to work with other people and communicate with them immediately to get the job done. I used to travel more when I was working for a public auditing company as an auditor/consultant. I guess it depends on your exact position and how long you've been in the field.

education & career path

I often tell this to people; once you are put into a path, it is very difficult to switch gears later in life. When I first decided on accounting, partly due to my parents and partly due to my counselors' influence, I didn't really know what the field entailed. After all, I was only in high school when I decided to pursue accounting, but I stuck to it, and accounting became all I knew. When I got my CPA [Certified Public Accountant], I was even more typecast. It's great to have on your resume, but employers start assuming that you should go to the financial world because of it. Your career is almost set for you. For instance, a few years ago I wanted to switch to being a trader, but I would have had to give up my title as a manager, as well as the five years I have put into the job. That was a difficult decision to make. If you don't change fast, it becomes harder to change later on. I'm not complaining, but there were moments in my life when I wanted to switch careers and I didn't, because it wasn't worth it.

Actually, I got lucky with my current position, because risk management is usually for graduates with statistics majors. Luckily, the group I'm in, reserves, requires people with financial backgrounds in addition to statistical backgrounds. So while this job fits my profile, it also brings me to another world. This is an aspect I'm really happy about.

Reserves are like extra cash. At a very minimum, a company needs to cover its expenses and not spend all of your money. In risk management, we make sure to keep a certain amount of money on our books to reduce the negative impact in situations where clients do not pay back the money they owe.

I was first employed at one of the best public accounting firms; it was a member of the “big five.” Although my GPA was average at best for an accounting major, around a 2.9, I guess my interviewing skills combined with the fact that I was quite active in clubs during college really paid off. I was able to secure that job as a junior in college.

No, I started off as an auditor. I never had to intern with my first company.

Well, it's better if you start off as an intern at a company, since it's a natural transition from intern to employee there. I had an internship in Albany, near my school, so I guess that helped with my job search.

As I mentioned before, I started off at another company, and then took a position here. Then, I actually took a position with an investment bank for a few years but I decided to come back here because I liked the atmosphere, as well as the other benefits. Besides, I didn't want to switch around so much, and many of my friends were working here. I already had the connections, so it was like coming home.

I don't know anyone who is made aware of the details of any profession as well as they should be during college. Honestly, I wasn't sure what to expect when I chose accounting as my major. But I always imagined working with big-name firms.

my day

You would be surprised. The concept of reserves doesn't change, but every quarter there is something different happening that makes you rethink the reserves situation. For instance, a couple of weeks ago, California was struck by widespread wildfires. You might not realize this, but the financial market in New York City was also affected. Not only were we concerned about the safety of California residents, but on the financial side, we were also taking into consideration the high possibility that many of the people affected by the fires might be our clients, and they would have a hard time repaying debts if they lost their homes and possessions to fire. When things like that happen, we have to respond immediately to avoid future losses.

Well, compared to other firms I have been at, many of my coworkers are older. Many of our conversations are also centered on our families. My department is usually quite relaxed compared to other divisions in our company. My boss and coworkers are usually quite understanding about extraneous circumstances. For instance, they understand if you are running a little late because of a family situation, and are flexible if you have to work at home, like I am doing now. Investment banks are different; the employees are younger and have different priorities, and no one talks about their families there. Sometimes, it all depends on the company or division you're working for. I got lucky that our company is more family-oriented.

I start my day with many meetings and a daily dose of about 40 emails. Issues always surround reserves, which is the main aspect of risk management that I focus on, and I look at different recommendations and changes that people who report to me have suggested. Based on these suggestions, I prepare reviews for management on a quarterly basis. There are many drafts before the final review.

I spend most of my time in the office in meetings. When I'm not in meetings, I'm often on the phone or checking my email. I keep abreast of all the things that are currently happening in the news, as well as other situations that might affect our clients. I depend on the information provided by my coworkers and other departments within our company. When clients default on their credit cards, the company stands to lose a lot of money. My division has to take all of this into account when we make our analysis to present to management and investors.

salary & lifestyle

Compensation depends on how many years you have worked at the company. For my position, an average base salary ranges from $80,000 to $140,000 annually. I think my salary is fair, but not unusual for my position considering the number of years I have put in. I've been a VP for three years and I've been working in this company for many more. My company is not that generous; it's a conservative company with a lot of employees, so compensation is not as high as it is at investment banks or smaller firms.

I believe it's about $45,000 annually.

I do not believe they are any more lenient than other companies, but they are more flexible. For instance, today I am working at home with a company-owned laptop. This option is available if you have a child or if you are unable to physically be at work due to family emergencies or other situations. However, I believe this option has become increasingly popular, and many companies are providing this to their employees.

Well, my company provides this option for people who really need it. As you can tell, I'm approaching the end of my pregnancy, so working from home is one of the better options for me. They also provide a Blackberry to keep me updated.

There is an annual bonus, but it depends on the economy as well as the company's financial situation for that year. The exact amount given in the bonus also depends on the economic situation as well as your position in the company.

I'm pretty happy with my job right now. I can spend as much time with my family as I want, and my company is very understanding about the instances when I do come to work late or when I have to work at home. My job also doesn't have much obligation outside of work hours. Although I spend a substantial amount of time working, about 40 hours a week at least, I enjoy what I'm doing and am quite dedicated to my job.

I can't say it is very stable because of the current market. Our company will have to lay off a large portion of its workforce very soon. I don't know who is on the list, or even if I am at risk, but I know that we will have to terminate about 25,000 employees. This is a scary prospect. Generally, the financial world is not very secure unless you are on the very top of the corporate ladder. Even then, nothing is set in stone.

pros, cons & trends

Well, the most satisfying aspect of my work is the ability to learn new things everyday and put them into practice. However, things can get stressful when I have to relay large quantities of information to different groups of people, especially when everyone has their own opinion on things. Although I enjoy working with people, it is difficult to please everyone. Teamwork is an integral aspect of my job, and it is important to communicate well with everyone.

I'm glad to say that I haven't had to sacrifice anything except for a little sweat, dedication and hard work. But I think these are common elements for success in all fields and careers.

I would say it is growing because of the current market. Risk management is becoming increasingly important, as everyone wants to understand the numbers more. All of us endeavor to predict the market as closely as possible. However, recent changes in the market have resulted in tighter regulations.

Banking will always be affected by the economy. The market is driven by large companies, and those companies are always affected by things happening around the world. For instance, I'm sure you are aware about the assassination of the ex-prime minister of Pakistan, Benazir Bhutto. Her assassination has also affected the U.S. economy and contributed to the market's downturn. Everything goes hand in hand.

Definitely. I have two employees reporting to me from India. Outsourcing is a way of saving money. These days, almost all major financial firms have a subsidiary outside the U.S. to take advantage of cheaper labor costs and other benefits.

advice

I wish I asked more questions of counselors or people involved in the financial world. I entered my career without knowing much about accounting. I would encourage students to intern at a company or two before they decide on entering the financial world or deciding what aspects they want to focus on. For instance, if you want a steady job, major in accounting. It will bring you a steady and good living. But if you want to be filthy rich, you should go to investment banking, but realize there is a lot of pressure involved. Ultimately, I would encourage students to follow their passion and choose jobs based on what they love to do.

It's unspoken, but I think women are still paid less in my industry. I will be on maternity leave soon, and I don't know what my coworkers are thinking, but many of them have asked me if I plan to come back to work. It's a little irritating, because I do plan to continue, but I can understand their reasoning since many women in this industry decide to leave once they have children. From my perspective, the sad truth is that there will always be a double standard.

I believe two of the most important factors are dedication and timing. Switch jobs when the market is good, and always present yourself well. Remember, business is all about initial presentation combined with a solid core. I'm happy to say that you can climb the corporate level until you are satisfied. I don't think ethnicity or gender is as much of a limiting factor anymore, because there are many female and/or ethnic CEOs out there.

Interpersonal skills are very important. You can't afford to have enemies at work, so communication and teamwork are important skills to learn. Besides, you'll be a better person overall with those characteristics.

Apply for an internship - any internship. You need to start somewhere to gain some experience and fill up your resume. To understand the corporate world, you have to be there and get your hands dirty. I also encourage students to learn how to network. It's very important in the business world.