Students pursuing their MBA/PGDM programme often encounter with the dilemma of selecting their major elective. Majority of the Business Schools require the students to select their specialization before the start of their second year. There are some institutions who give this opportunity to the students at the time of admission itself. The specializations offered are in the area of Finance, Human Resource Management, Marketing and Operations/Systems. The selection of specialization depends on the employment potentials. Currently, specialization in finance provides better employment opportunities. While the top business schools offer finance as the major specialization, most of the business schools belonging to second and third level offers dual specialization which enables a student to opt for one major specialization and one minor specialization. Thus a student may choose a combination of Finance and HR, Finance and Marketing, Finance and Operations/Systems etc. Among these, Finance and Marketing is the best combination.
Finance specialization can be Applied Finance or Behavioural Finance. Specialisation in applied finance enables the student to learn corporate finance and accounting practices. However, it is difficult for a MBA/PGDM fresher to get entry into the corporate finance world because generally, by convention, companies prefer Chartered Accountants for the post of their finance manager because of their practical exposure in company accounts. However, students passing out from institutions like IIMs and holding considerable practical experience in accounting and finance are also considered for such posts. Therefore, those who are aspiring for the position of finance manager or executive in a company need to have previous experience in the finance department of a company. Alternatively, those who are aspiring for the post of finance manager in a company may simultaneously pursue the courses like ICWA, CA etc along with their MBA programme.
A student can can also register for the Common Proficiency Test (CPT) conducted by the Institute of Chartered Accountants at the time of joining for MBA/PGDM. After completing the minimum stipulated period of 60 days from the date of registration he/she can appear for the CPT . Once the student passes the CPT, he/she can join for the Professional Competency Course (PCC) and register for practical training as article/audit assistant under a qualified Chartered Accountant. He/she should also register for the Information Technology Training. The new scheme of CA Examination stipulates that the student should complete a minimum period of 15 months practical training as article/audit assistant before appearing for the PCC Examination. This can be done after completing the MBA/PGDM and appear of the examination after 15 months. Since the student gets practical training in accounting and finance, he can easily get a birth in the corporate financial profession (For more details regarding CA Examinations visit http://www.icai.org/). Besides, the period of article/audit will enable the student to develop contacts with the corporate world.
Another option is to get an internship in the finance department of a company for their summer project. This will enable the student to understand the corporate financial practices and help them to solve a real-time problem. Many business schools are getting placement for the students through the pre-placement internship programmes. However, considerable background work is necessary to get tied up with companies at the institutional level because many companies do not permit students to have access to real-time financial data for fear of leaking out vital information.
An upcoming area in corporate finance is the risk management. Many multinational companies are now having risk management department and a risk manager. One can specialize in risk management by joining for specialized programmes in risk management. Global Association of Risk Professionals (GARP) is offering a certification programmes in risk management. The examinations are conducted online and students can complete this course together with their MBA/PGDM programme . They are offering Financial Risk Manager (FRM) for those who have a minimum of two years experience in finance. (For more information please visit http://www.garp.com/)
A student who wants to take up finance profession has to major in finance in their MBA/PGDM programme. The rules for majoring in a specific area differs form institution to institution. However, a common practice is that in order to specialize in a specific area the student should opt for a minimum of 10 papers of which at least 6 papers should be in the major area. Many business schools are offering dual specialization which enables a student to get specialized in two areas. For example, if a student opt for finance and marketing as specialization with finance as major he/she has to opt for 6 papers in finance. The electives for specialization generally available are Corporate Financial Management, Financial Management and Policy, Strategic Corporate Finance, International Financial Management, Financial Planning and Policy, Management Control System, Financial Information System, Financial Engineering, Financial Modeling, Corporate Risk Management, Mergers and Acquisitions, Corporate Restructuring etc. Another upcoming area is Microfinance. The electives offered differ from institution to institution. However in university affiliated MBA programmes, the papers offered by different institutions affiliated to the same university will be the same. A student has to choose the electives suitable to his/her career ambition.
Another question is which all institutions are offering exclusive management programes in finance. The major institution offering exclusive management programme in finance is Institute of Financial Management and Research (IFMR , Chennai). They are offering various specializations in finance. If you are looking for IIMs, IIMB and IIMC are the best for majoring in finance. Other business schools are also offering finance as major electives. A student should study the profile of the institution, facilities available, profile of faculty, papers offered as electives, curriculum and pedagogy, industry-institutional tie-up, acceptance of the students passed out from the institution among the employers etc. Apart from visiting the website of the institutes, they should also interact with alumni and scan through the previous placement records. A career in finance is highly promising and will act as a ladder to take the student to higher positions in the corporate world.
Finance specialization can be Applied Finance or Behavioural Finance. Specialisation in applied finance enables the student to learn corporate finance and accounting practices. However, it is difficult for a MBA/PGDM fresher to get entry into the corporate finance world because generally, by convention, companies prefer Chartered Accountants for the post of their finance manager because of their practical exposure in company accounts. However, students passing out from institutions like IIMs and holding considerable practical experience in accounting and finance are also considered for such posts. Therefore, those who are aspiring for the position of finance manager or executive in a company need to have previous experience in the finance department of a company. Alternatively, those who are aspiring for the post of finance manager in a company may simultaneously pursue the courses like ICWA, CA etc along with their MBA programme.
A student can can also register for the Common Proficiency Test (CPT) conducted by the Institute of Chartered Accountants at the time of joining for MBA/PGDM. After completing the minimum stipulated period of 60 days from the date of registration he/she can appear for the CPT . Once the student passes the CPT, he/she can join for the Professional Competency Course (PCC) and register for practical training as article/audit assistant under a qualified Chartered Accountant. He/she should also register for the Information Technology Training. The new scheme of CA Examination stipulates that the student should complete a minimum period of 15 months practical training as article/audit assistant before appearing for the PCC Examination. This can be done after completing the MBA/PGDM and appear of the examination after 15 months. Since the student gets practical training in accounting and finance, he can easily get a birth in the corporate financial profession (For more details regarding CA Examinations visit http://www.icai.org/). Besides, the period of article/audit will enable the student to develop contacts with the corporate world.
Another option is to get an internship in the finance department of a company for their summer project. This will enable the student to understand the corporate financial practices and help them to solve a real-time problem. Many business schools are getting placement for the students through the pre-placement internship programmes. However, considerable background work is necessary to get tied up with companies at the institutional level because many companies do not permit students to have access to real-time financial data for fear of leaking out vital information.
An upcoming area in corporate finance is the risk management. Many multinational companies are now having risk management department and a risk manager. One can specialize in risk management by joining for specialized programmes in risk management. Global Association of Risk Professionals (GARP) is offering a certification programmes in risk management. The examinations are conducted online and students can complete this course together with their MBA/PGDM programme . They are offering Financial Risk Manager (FRM) for those who have a minimum of two years experience in finance. (For more information please visit http://www.garp.com/)
A student who wants to take up finance profession has to major in finance in their MBA/PGDM programme. The rules for majoring in a specific area differs form institution to institution. However, a common practice is that in order to specialize in a specific area the student should opt for a minimum of 10 papers of which at least 6 papers should be in the major area. Many business schools are offering dual specialization which enables a student to get specialized in two areas. For example, if a student opt for finance and marketing as specialization with finance as major he/she has to opt for 6 papers in finance. The electives for specialization generally available are Corporate Financial Management, Financial Management and Policy, Strategic Corporate Finance, International Financial Management, Financial Planning and Policy, Management Control System, Financial Information System, Financial Engineering, Financial Modeling, Corporate Risk Management, Mergers and Acquisitions, Corporate Restructuring etc. Another upcoming area is Microfinance. The electives offered differ from institution to institution. However in university affiliated MBA programmes, the papers offered by different institutions affiliated to the same university will be the same. A student has to choose the electives suitable to his/her career ambition.
Another question is which all institutions are offering exclusive management programes in finance. The major institution offering exclusive management programme in finance is Institute of Financial Management and Research (IFMR , Chennai). They are offering various specializations in finance. If you are looking for IIMs, IIMB and IIMC are the best for majoring in finance. Other business schools are also offering finance as major electives. A student should study the profile of the institution, facilities available, profile of faculty, papers offered as electives, curriculum and pedagogy, industry-institutional tie-up, acceptance of the students passed out from the institution among the employers etc. Apart from visiting the website of the institutes, they should also interact with alumni and scan through the previous placement records. A career in finance is highly promising and will act as a ladder to take the student to higher positions in the corporate world.
No comments:
Post a Comment