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Describe the role of financial institutions?
A financial institution conducts transactions such as investments, loans or deposits. There are a variety of financial institutions that can provide services in this industry including Commercial Banks, Investment Banks, Insurance Companies, Brokerages, Investment Companies, Unit Investment Trusts (UIT), Face Amount Certificates, Management Investment Companies and NonBank entities such as Savings and Loans and Credit Unions. All of these institutions interact with consumers and benefits to assist consumers in attaining their financial goals.
explain factors that influence customers/clients/business buying behavior.
Buying behavior explains the purchase decisions that consumers make on a daily basis. As a business function, this means understanding what consumers buy, why a consumer has decided to make that purchase, when the purchase was made and from what distribution channel and how often the product or service is used. Buying behavior can be influenced by a variety of internal and external factors including perception of brand, competition, society and consumer research.
Distinguish between economic goods and services?
A good is something that you can use or consume. You buy a good with the idea that you will use it, either just once or over and over again. A service is something that someone does for you, like give you a haircut or fix you dinner. Another way to identify the difference is that a good is tangible and a service is intangible.
Describe the nature of legally binding contracts?
A contract that is legally binding is considered valid and enforceable in a court of law. A contract is a clear outline of an agreement between at least two parties. Usually contracts define each party involved and any terms used within the agreement, the duration and/or timelines of the contract, payment terms and provisions that protect each party. Legally binding contracts are required to have “consideration” which means both parties are willingly entering into the agreement and are not being coerced.
Analyze employer expectations in the Business environment?
When employed in an organization, an employee should understand what management requires of him/her within his/her position, thus allowing an employee to meet and/or exceed those demands.
Explain the nature of convergence/consolidation in the finance industry?
The consolidation seen in the finance industry recently has been influenced by the 2010 Dodd-Frank Wall Street Reform and Consumer Protection Act. This recent legislation provides added protection for consumers, has increased regulation and expenses for financial institutions to operate. This often impacts the smaller, local banks ability to create a profit and therefore encourages consolidation with larger financial institutions to share the increased costs to do business.
Explain the role of ethics in financial information management?
The most important role of an employee in financial information management is to manage assets in order to keep a business healthy. This requires investing wisely and transparently and managing a business’ cash flow to create optimum profit.
Discuss legal considerations affecting risk management?
Risk management oversees compliance with industry regulations, laws and business rules. To avoid legal consequences, appropriate training must be provided to employees to manage this risk.
Maintain appropriate personal appearance?
Maintaining your personal appearance is necessary as employees represent the business in which he/she is employed. Personal appearance includes facial expressions, body language, as well as clothes and grooming.
Explain the need for innovation skills?
Innovation is necessary for an organization to continue to move forward in the marketplace and meet customer needs. Innovation includes the ability to think critically, be creative, an ability to solve problems, manage risk, conduct research, coordinate project management, use information technology as well as the basic tasks of reading, writing and mathematics.
orient new employees.
Providing an orientation is a process that allows an organization to integrate a new employee and enable him/her to contribute to the team quickly. At this time, an employee will learn about personnel policies, company safety programs, and details about his/her position. Possible actions can include providing a mentor, providing work samples, and providing a Frequently Asked Questions document.
Describe the use of technology in the financial information management function?
The financial information management function must balance the need to purchase technology for business operations and investing in technology that create enhanced products and services for consumers. For example, mobile technology now provides more convenience for both employees (simplified data entry) and consumers (access for purchase). Cloud computing offers businesses flexibility in a variety of ways, including managing and using data effectively for decision making.
Explain the nature of effective written communications
Written communication is the most common form of business communication and therefore requires employees to write frequently and rapidly. “The words we write are very real representations of our companies and ourselves.” Janis Fisher Chan. Written communications allow an employee to receive instructions or information upon which to base decision or take a specific action. Effective communication should answer questions, be relevant, focus on the end user, be specific, include examples, be tactful and accurate.
Explain the types of economic systems?
There are four types of economic systems commonly studied. A traditional economy relies on custom and ritual to make its choices. A market economy relies on the consumption choice of consumers. A command economy relies on the government making all choices for consumers. A mixed economy relies on limited government involvement in a market based economy.
Describe the nature of budgets?
A budget is an itemized forecast of an individual or company’s income and expenses for a designated period of time. This allows the entity to evaluate how to use funds in fixed and discretionary categories as well as provides focus to achieve financial goals and avoid debt.
Explain the nature of project management?
Project management is using knowledge, skills and techniques to execute a temporary group activity designed to develop a product, service or outcome both effectively and efficiently. There are five processes needed in project management: initiating, planning, executing, monitoring and controlling and closing.
Explain the nature of operations?
Operations include the activities involved in the daily functions of the business to generate revenue.
Describe the nature of information management?
Information management is the process of collecting and analyzing data that can be used in the strategic decision making process for a business. This can support a variety of business functions including developing customer databases, managing electronic purchasing decisions and monitoring competitor information.
Demonstrate ethical work habits?
To exhibit ethical work habits, an employee will be punctual, flexible, creative, attentive, complete objectives on time, deliver quality products, face challenges in a positive manner, manage their time, show respect by interacting in a positive manner with co-workers, and demonstrate leadership by solving problems, resolving conflicts effectively and encouraging mentorship.
Discuss actions employees can take to achieve the company's desired results?
One of the most important tasks an employees has is to work towards a company’s goals in order to create a profit.
Use customer relationship management technology?
Customer Relationship Management (CRM) technology is used to understand how your company uses data to influence interactions with current and future customers. CRM assists a business to understand how data is used to influence decision making to increase profits.
Discuss the effect of tax laws and regulations on Financial transactions.
There are four types of financial transaction tax: Securities, Currency, Bank and Automated Payment. These taxes, known as financial transaction taxes, help keep financial markets stable, allows for equitable tax collection across a nation and lowers the risk of tax evasion.
Discuss the nature of risk control? (internal, external)
Risk can be seen in both internal and external environments for a business. External risks can include funding, regulatory affairs, competition, partnerships, environment and brand reputation. Internal risks can include financial management, legal compliance, and corporate governance.
Handle telephone calls in a business like manner?
A businesslike manner on the telephone includes a formal greeting including “Good Morning/Afternoon”, name of business and name of department or person answering the call. Calls should be answered promptly, take messages as needed and use the hold button if needed.
Describe sources of security information?
There are many places that a consumer or business can gather information on securities including any local financial institution. The U.S. Treasury Department provides information at www.treasury.gov and the TreasuryDirect.gov website. The U.S. Securities and Exchange Commission can be found online at www.sec.gov and state governments often have a securities division within their treasury departments.