Beijing Paradise BBS Backup/PARADISE.ISO/software/BBSDOORW/JOB4.ZIP/OOHB0022.HBK

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Financial Managers

(D.O.T.  160.167-058; 161.117-018; 169.167-086; 186.117-066, -070,
-078, -086; .167-054, -086; and 189.117-038)

Nature of the Work

Practically every firm whether in manufacturing, communications,
finance, education, or health care has one or more financial
managers.  Some of them are treasurers, controllers, credit
managers, cash managers; they prepare the financial reports required
by the firm to conduct its operations and to ensure that the firm
satisfies tax and regulatory requirements.  Financial managers also
oversee the flow of cash and financial instruments, monitor the
extension of credit, assess the risk of transactions, raise capital,
analyze investments, develop information to assess the present and
future financial status of the firm, and communicate with stock
holders and other investors.

   In small firms, chief financial officers usually handle all
financial management functions.  However, in large firms, these
officers oversee all financial management departments and help top
managers develop financial and economic policy and establish
procedures, delegate authority, and oversee the implementation of
these policies.

   Highly trained and experienced financial managers head each
financial department.  Controllers direct the preparation of all
financial reports for example, income statements, balance sheets,
and special reports such as depreciation schedules.  They oversee
the accounting, audit, or budget departments.  Cash and credit
managers monitor and control the flow of cash receipts and
disbursements to meet the business and investment needs of the firm.
For example, cash flow projections are needed to determine whether
loans must be obtained to meet cash requirements, or whether surplus
cash may be invested in interest-bearing instruments.  Risk and
insurance managers oversee programs to minimize risks and losses
that may arise from financial transactions and business operations
undertaken by the institution.  Credit operations managers establish
credit rating criteria, determine credit ceilings, and monitor their
institution's extension of credit.  Reserve officers review their
institution's financial statements and direct the purchase and sale
of bonds and other securities to maintain the asset-liability ratio
required by law.  User representatives in international accounting
develop integrated international financial and accounting systems
for the banking transactions of multinational organizations.  A
working knowledge of the financial systems of foreign countries is
essential.

   Financial institutions such as banks, savings and loan associations,
credit unions, personal credit institutions, and finance companies
may serve as depositories for cash and financial instruments and
offer loans, investment counseling, consumer credit, trust
management, and other financial services.  Some specialize in
specific financial services.  Financial managers in financial
institutions include vice presidents who may head one or more
financial departments bank branch managers, savings and loan
association managers, consumer credit managers, and credit union
managers, for example.  These managers make decisions in accordance
with policy set by the institution's board of directors and Federal
and State laws and regulations.

   Due to changing regulations and increased government scrutiny,
financial managers in financial institutions must place greater
emphasis on accurate reporting of financial data.  They must have
detailed knowledge of industries allied to banking such as
insurance, real estate, and securities and broad knowledge of
business and industrial activities.  With growing domestic and
foreign competition, knowledge of an expanding and increasingly
complex variety of financial services is becoming a necessity for
financial managers in financial institutions and other corporations.
Besides supervising financial services, financial managers in
financial institutions may advise individuals and businesses on
financial planning.

   Outstanding financial managers are prime candidates for promotion to
top management jobs.

Working Conditions

Financial managers are provided with comfortable offices, often
close to top managers and to departments which develop the financial
data these managers need.  Although overtime may sometimes be
required, financial managers typically work a 40-hour week.
Attendance at meetings of financial and economic associations and
similar activities is often required.  In very large corporations,
some traveling to subsidiary firms and to customer accounts may be
necessary.

Employment

Financial managers held about 701,000 jobs in 1992.  Although these
managers are found in virtually every industry, one-third were
employed by financial institutions banks, savings institutions,
finance companies, credit unions, insurance companies, securities
dealers, and real estate firms, for example.  Nearly another third
were employed by services industries, including business, health,
social, and management services.

Training, Other Qualifications, and Advancement

A bachelor's degree in accounting or finance, or in business
administration with an emphasis on accounting or finance, is
suitable academic preparation for financial managers.  A Master of
Business Administration (MBA) degree is increasingly valued by
employers.  Many financial management positions are filled by
promoting experienced, technically skilled professional personnel
for example, accountants, budget analysts, credit analysts,
insurance analysts, loan officers, and securities analysts or
accounting or related department supervisors in large institutions.

   Due to the growing complexity of global trade, shifting Federal and
State laws and regulations, and a proliferation of new, complex
financial instruments, continuing education is becoming vital for
financial mangers.  Firms often provide opportunities for workers to
broaden their knowledge and skills and encourage employees to take
graduate courses at colleges and universities or attend conferences
sponsored by the company.  In addition, financial management,
banking, and credit union associations, often in cooperation with
colleges and universities, sponsor numerous national or local
training programs.  Persons enrolled prepare extensively at home,
then attend sessions on subjects such as accounting management,
budget management, corporate cash management, financial analysis,
international banking, and data processing and management
information systems.  Many firms pay all or part of the costs for
those who successfully complete courses.  Although experience,
ability, and leadership are emphasized for promotion, advancement
may be accelerated by this type of special study.

   In some cases, financial managers may also broaden their skills and
exhibit their competency in specialized fields by attaining
professional certification.  For example, the Association for
Investment Management and Research confers the Chartered Financial
Analyst designation to investment professionals who have a
bachelor's degree, pass three test levels, and have 3 or more years
of experience in the field.  The National Association of Credit
Management administers a three-part certification program for
business credit professionals.  Through a combination of experience
and examinations, these financial managers pass through the level of
Credit Business Associate, to Credit Business Fellow, to Certified
Credit Executive.  The Treasury Management Association confers the
Certified Cash Manager designation to those who pass an examination
and have 2 years of relevant experience.

   Persons interested in becoming financial managers should like to
work independently, deal with people, and analyze detailed account
information.  The ability to communicate, both orally and in
writing, is increasingly important.  They also need tact, good
judgment, and the ability to establish effective personal
relationships to oversee supervisory and professional staff members.

   Financial analysis and management have been revolutionized by
technological improvements in personal computers and data processing
equipment.  Knowledge of their applications is vital to upgrade
managerial skills and to enhance advancement opportunities.

   Because financial management is critical for efficient business
operations, well-trained, experienced financial managers who display
a strong grasp of the operations of various departments within their
organization are prime candidates for promotion to top management
positions.  Some financial managers transfer to closely related
positions in other industries.  Those with extensive experience and
access to sufficient capital may head their own consulting firms.

Job Outlook

Like other managerial occupations, the number of applicants for
financial management positions is expected to exceed the number of
job openings, resulting in competition for jobs.  Employment of
financial managers is expected to increase about as fast as the
average for all occupations through the year 2005.  In addition, job
openings will arise each year as financial managers transfer to
other occupations, start their own businesses, or retire.  Similar
to other managers, most financial managers who leave their jobs seek
other positions in their field; relatively few experienced workers
leave the occupation permanently each year.

   Although the need for skilled financial management will increase
due to the demands of global trade, the proliferation of complex
financial instruments, and continually changing Federal and State
laws and regulations, employment growth among financial managers
will be tempered by corporate restructuring and downsizing in many
industries.  Many firms are reducing their ranks of middle managers
in an effort to be more efficient and competitive.  Similarly, as
the banking industry consolidates and banks merge their operations,
some financial management positions may be eliminated.  These forces
will prevent the growing need for skilled financial managers from
resulting in dramatic employment growth.

   Many opportunities will still exist for the most skilled, adaptable,
and knowledgeable financial managers.  Those who keep abreast of the
latest financial instruments and changing regulations, and those
familiar with a range of financial services for example, banking,
business credit, credit unions, insurance, real estate, and
securities and with data processing and management information
systems will enjoy the best employment opportunities.  Developing
expertise in a rapidly growing industry, such as health care, also
may prove helpful.

Earnings

The median annual salary of financial managers was $39,700 in 1992.
The lowest 10 percent earned $20,200 or less, while the top 10
percent earned over $77,800.

   According to a survey by Robert Half International, a staffing
services firm specializing in accounting and finance, salaries of
chief financial officers/treasurers ranged from $56,000 in the
smallest firms to $290,000 in the largest firms in 1993;
controllers, $44,000 to $129,000; and assistant controllers, $38,000
to $75,000.

   The salary level depends upon the manager's experience and the size
and location of the organization, and is likely to be higher in
large organizations and cities.  Many financial managers in private
industry receive additional compensation in the form of bonuses,
which also vary substantially by size of firm.

Related Occupations

Financial managers combine formal education with experience in one
or more areas of finance such as asset management, lending, credit
operations, securities investment, or insurance risk and loss
control.  Workers in other occupations which require similar
training and ability include accountants and auditors, budget
officers, credit analysts, loan officers, insurance consultants,
portfolio managers, pension consultants, real estate advisors,
securities analysts, and underwriters.

Sources of Additional Information

   For general information about financial management careers, contact:

   Financial Management Association, Intl., College of Business
Administration, University of South Florida, Tampa, FL 33620-5500.

   Financial Managers Society, 8 S.  Michigan Ave., Suite 500, Chicago,
IL 60603.

   For information about financial management careers in banking and
related financial institutions, contact:

   American Bankers Association, Center for Banking Information, 1120
Connecticut Ave.  NW., Washington, DC 20036.

   For information about financial management careers in credit unions,
contact:

   Credit Union Executives Society, P.O.  Box 14167, Madison, WI 53714.

   For information about financial careers in business credit
management, the Certified Credit Executive program, and institutions
offering graduate courses in credit and financial management,
contact:

   National Association of Credit Management (NACM), and Credit
Research Foundation, the education and research affiliate of NACM,
8815 Centre Park Dr., Columbia, MD 21045-2117.

   For information about careers in corporate cash management and the
Certified Cash Manager program, contact:

   Treasury Management Association, 7315 Wisconsin Ave., Bethesda, MD
20814.

   For information about the Chartered Financial Analyst program,
contact:

   Association for Investment Management and Research, 5 Boar's Head
Lane, P.O.  Box 3668, Charlottesville, VA 22903.

   For information about financial management careers in the health
care industry, contact:

   Healthcare Financial Management Association, 2 Westbrook Corporate
Center, Suite 700, Westchester, IL 60154.

   For information on careers and courses for financial managers in the
banking industry, contact:

   Savings and Community Bankers of America, Education Services, Center
For Financial Studies, 200 Barlow Rd., Fairfield, CT 06430.

   Information about careers with the Federal Reserve System is
available from:

   Board of Governors, The Federal Reserve System, Division of Human
Resources Management, Washington, DC 20551, or from the human
resources department of the Federal Reserve bank serving each
geographic area.

   State bankers' associations can furnish specific information about
job opportunities in their State.  Or write directly to a particular
bank to inquire about job openings.  For the names and addresses of
banks and savings and related institutions, as well as the names of
their principal officers, consult one of the following directories.

   The American Financial Directory (Norcross, Ga., McFadden Business
Publications).

   The U.S.  Savings and Loan Directory (Chicago, Rand McNally & Co.).

   Rand McNally Credit Union Directory (Chicago, Rand McNally & Co.).

   Polk's World Bank Directory (Nashville, R.L.  Polk & Co.).