Finance 360 ° – A Holistic View

24 Dec 2021

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MY UNDERSTANDING OF FINANCE

Finance is well-defined as the management of money that includes activities such as investing, lending, budgeting, saving, borrowing, and forecasting. To clarify further, there are three main types of finance:

(1) Personal, (2) Corporate, and (3) Public/government.

Now, Personal finance is the financial management which an individual or a family unit performs to budget, save, and spend monetary resources over time, taking into account various financial risks and future life events, whereas corporate finance is the area of finance that deals with sources of funding, the capital structure of corporations, the actions that administrators take to increase the value of the firm to the shareholders, and the tools and analysis used to apportion financial resources. The key difference is that corporate finance involves managing assets, liabilities, revenues, and debts for a business, & on the contrary personal finance defines all financial decisions and activities of an individual or household, including budgeting, planning, savings, retirement planning, insurance &mortgage. When it comes to similarity, both the branches have the same purpose.

When it comes to public or government finance, it is the study of the role of the government in the economy. It is the subdivision of economics that evaluates the government income and government spending of the public establishments and the alteration of one or the other to attain desirable effects and avoid unwanted ones. So, again when it comes to the key difference between the three, public finance is the only branch that includes tax systems, government expenditures, budget procedures, stabilization policy and instruments, debt issues, and other government concerns.

Why is Basic Financial Literacy Important for Every Finance & Non-Finance Professional?

It is vital to understand Finance & the holistic answer for it would be financial literacy as the convergence of financial, credit, and debt management knowledge. This is necessary to make fiscally responsible decisions & choices that are fundamental to our everyday lives. Financial literacy includes understanding aspects like how a checking account works, what using a credit card means, and how to avoid debt. To summarize, financial literacy has a substantial impact on families as they try to stabilize their budget, buy a home, pay their children’s education fees, and ensure an income for superannuation.

Careers in Finance?

When it comes to job opportunities in the area of Finance, it is a very broad stream that offers ample opportunities as follows:

As mentioned above each of these paths has their importance and it might not be helpful to compare between them. However certain paths have more popularity such as Commercial banking which is all about providing clients with credit products and dealing with their requirements. Then comes investment banking, which is helping the government, corporates, and institutions raise their capital. Then another major field is corporate finance that involves building the capital structure of the organization, looking for means of financing, etc.

What Does SOIL Offer its Finance Students?

When it comes to Academics, where the student is interested to take a core subject as Finance then SOIL offers a wide range of subjects in a three-semester system in the PGPM program. In the Finance specialization, there are 3 compulsory subjects for every student and 8 electives. The 3 core courses and 8 electives as per the curriculum are given in the table below:

Compulsory subjects	Electives
Accounting for Managers	Security Analysis & Portfolio Management
Corporate Finance	Banking & Financial Services
Advance Corporate Finance	Fin-Tech & Digital Finance
	Business Valuation
	Financial Modelling
	Behavioural Finance
	Merges & Acquisition
	Risk Management

Each of these subjects has been handpicked very carefully and is designed as per the current market or industry need. Studying such subjects give us a broad horizon in the area of Finance. Subjects such as Banking and Financial Services would cover 2 broad areas and Digital & Fintech would involve analytics. Subjects such as Behavioural Finance and Financial Modelling would help in company analysis and developing one’s cognitive business models. Risk management is a very specialized subject that is crucial in the era of technology where one needs to have expertise in detecting errors in the systems created by our ancestors and modifying that system with appropriate risk mitigation measures. All in all, calculated risk is to be measured for each step. Last but not least, other areas of finance are also included in the curriculum with relevant workshops of tools & software which are critical for working especially in emerging fintech firms.

The Finance Club at SOIL

Now, apart from the carefully curated, industry-relevant curriculum, SOIL also has an academic Finance Club with its motto being: ‘Finance 360 °’. The club’s objectives are to emphasize the importance of finance, to make students more competitive in terms of both concepts as well as practice in the area of finance and to give a platform to them to bring out their best and improvise upon their concepts with a better practical understanding. For this purpose, the club conducts various activities, simulation games, quizzes, case studies, presentations, etc. on a monthly basis.

Mudit Vasal
President, Finance Club
PGPM, Class of 2022

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