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Home >> Actuarial Articles >> Actuarial Career Feature >> Ethical Information Analyst
  • Actuarial Career Feature
Ethical Information Analyst

Though insurance companies account for majority of the hire for actuary jobs, a small subset of these jobs is based at watchdog organizations that research ethical issues. These jobs are known as ethical information analysts. Many watchdog organizations monitor the ethical activities of multinational corporations. Therefore, these organizations hire ethical information analysts to statistically analyze ethical issues concerning global corporations. The analysts collect both positive and negative ethical information in order to rate each corporation's overall ethical standing.

These ethical analyst jobs are actuarial jobs since they require statistical and mathematical knowledge. The ethical analyst first systematically researches each corporation. The research usually unearths a corporation’s environmental practices, employment trends, accounting history, and other transactions that have ethical import. The ethical analysts then code their research into a software database that graphically transforms it into charts, rankings, and curves. Using these graphics, they do statistical analysis to achieve an idea of the corporation’s total ethical impact on world business, economics, employees, and the environment. Finally, these analysts may give a brief presentation to their company about their researched corporations’ ethical ratings. In addition, they also write articles to be published in the ethical organization’s website or journal.

The Geneva-based organization Covalence is a prominent example of this watchdog agency. Covalence hires ethical information analysts as interns, either on-site or via telecommuting. There, analysts use the Internet as their primary source for researching corporations’ ethical issues, and their impact on developing countries. Besides performing research and undertaking mathematical analysis, they participate in United Nations (UN) and other Non-governmental Organization (NGO) conferences. Their final reports are also published on Covalence’s website and even in international newspapers. They are further encouraged to provide feedback on Covalence’s work procedures and participate in testing activities.

Ethical information analyst jobs are unique and found at very few organizations besides Covalence. However, there are many more jobs for actuaries that perform similar work. These analysts work for a broad range of industries, especially for insurance, marketing, sales, and health organizations. At all these industries, they routinely perform coding, statistical calculations, research of economic and industry-related trends, and consulting. They specifically consult upper management on their financial transactions, such as investments. They also strive to enhance risk management during their consultations, since they are greatly tuned into wasteful or unnecessary financial practices.

At many corporations, information analysts work as overall financial analysts. At banks, they may advise managers on which stocks and bonds to buy/sell and to price interest rates. At insurance companies, they help insurance agents create insurance policies that leverage maximum risk management for both the company and policyholders. Moreover, they analyze the accounts of each policyholder in order to help managers decide which clients are too high-risk for coverage.

All information analyst jobs require sophisticated mathematical skills and statistical methods. In all industries, analysts evaluate their company’s financial status and write reports translating those mathematical figures into legible guidelines. They usually hold meetings with their managers to advise them on financial transactions that may benefit the company. Some jobs may require more investment knowledge than others, especially bank and securities jobs. Furthermore, the most qualified corporate analysts specialize in their company’s industry, which runs the gamut from alternative energy to tire manufacture. They keep track of the latest developments and trends concerning that industry so as to best advise their managers.

Information analysts also use software to abet their mathematical calculations. They specifically use spreadsheet and database software (such as Microsoft Excel and Microsoft Access) to perform financial data-entry and record keeping. As they review their financial data on the computer, they obtain a clear picture of their company’s current and projected future earnings. This information is what prompts them to meet with managers and influence important financial decisions.

Most information analysts have bachelor’s degrees in finance or economics, with many also holding Master of Business Administration degrees (MBAs). They are well experienced with economics, statistics, accounting procedures, and business administration. They are additionally familiar with option pricing and risk management. Moreover, a number of information analysts are required to have licensure, especially if they work in the securities field. Furthermore, some information analysts work as personal financial advisors, jobs that also require licensure. Licensure requirements vary by state, so the analyst must research those requirements well before entering his or her field.

Many analysts also obtain certification. The most common certification is the Chartered Financial Analyst (CFA) certification, conferred by the CFA Institute. The requirements for this certification include a bachelor’s degree, four years of hands-on experience, and the passing of three CFA exams. It usually takes CFA students two years to complete this certification.

Information analysts earn fairly large salaries. Their median income level is about $66,000 per year. Personal financial advisors who work actuarial consulting jobs can easily earn over $100,000, since they mainly work with wealthy clients. In addition, many information analysts and personal advisors receive bonuses on top of their salaries. These bonuses are based on predictions of the returns on investments.

Actuarial analyst jobs are highly selective because they require both advanced mathematical skills and strong communication skills. Communication skills are a must because analysts need to break down complicated mathematical figures for their managers and counsel them on financial strategies. Some of these jobs, such as personal financial advisor jobs, also emphasize sales skills.

Information analyst careers are widely expected to soar during the next decade. Yet, the caveat is that these analysts must undergo rigorous education and experience prior to earning large incomes. Nonetheless, they will be in huge demand due to the rise of global investments, retirement pension plans, and insurance actuarial jobs .

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