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What You Need To Know If You Want To Become A Credit Analyst

If you enjoy analysing numbers, a job as a commercial analyst, ideally known as a risk analysis would be well suited for you. The primary focus of this job is to determine the ability of a firm to repay its loans through the company’s financial statements evaluation. A risk analyst may work for a government agency, a bank, or any organization with financial investment activity.

Financial Analysis

The financial analysis of a company begins by examining the previous trends of the business. The analyst reviews the business’ past financial statements as well as the operating performance. He or she factors in the level of talent in the company, the competitor’s performance as well as the economic state to come up with an opinion and recommendations. Using the company’s trends, the analyst can tell if the future and the goals of the business are realistic and achievable.

Roles

A risk analyst also helps the organization reduce its risk. His or her job is to analyze the balance sheets and income statement. A credit analyst may also be required to prepare reports that justify whether the firm is in a state to take the risk of extending credit to their clients. If so, the analyst has to state the degree of risk involved. Also, if the report is approved, the company may require his or her skills in creating a payment plan structure that would work for the agency. This blog from Harnham discusses a lot of the reasons you may wish to get involved in credit analysis.

Skills

To become an exceptional commercial credit analyst, you need to have skills in accounting as you will spend most of your time running calculations for the agency’s tax returns and financial statements. Knowledge in spreadsheet programs also helps in creating reports for comparison with financial data of the previous years. Oral and written communication skills are also needed for the ability to present your findings to the team that runs or manages the company.

Requirements to become a Risk Analyst

To become a qualified commercial credit analyst, you need to have a degree in finance, accounting or business administration. Also, you will be in a better position to secure a job if you have a professional designation like a Master’s Degree in the field or a Charter in financial analysis. You may also want to get certification through the National Association or Credit management to get a better-paying position with any company.

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