Since the start of the Great Recession in August of 2007, the finance industry has experienced a set of shakeups that have threatened to change these institutions at their core. The collapse of the housing market, resultant financial distress on banking institutions, and the increased use of online trading services are all extremely important topics that should be covered in any finance training course that is worth its weight in salt. Here is why.
- Financial Distress and Its Causes
- Online Trading
- Value at Risk
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As Ben Bernanke of the Federal Reserve System points out, the Great Recession has changed banking in huge ways making this one of the most important finance project topics for students and trainees looking to go into business. Whereas many lessons are meant to show things that you should be doing, by and large banks have learned the things they should stay away from.
For example, giving out huge credit lines and massive mortgages to people that can never hope to repay either of those debts is one practice banks have learned they need to avoid at all costs. As written on RealEstate.com predatory practices, willful ignorance on the part of borrowers, and neglect on the part of Fannie Mae and Freddie Mac all feed into the issue. What you have as a result are banks strapped for cash after their bets did not pay off. Financial institutions will be dealing with the ramifications of these issues for years making this one of many relevant finance project topics moving forward.
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According to Pew Internet, 78.1% of Americans now use the internet for work, play, and study. With the huge uptick in internet access, it is no wonder that online trading is increasing as well. The problem? Cyber-criminals realize the huge opportunities that online trading potentially generates. According to the FBI, there were more than 280,000 cases of cyber-crime in 2012 alone. Safety, regulation, and benefits of online trading are all incredibly important finance training topics that students and employees should be educated on.
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Did you know, according to Statistics Brain, there have been over 15 million home foreclosures since 2007? The huge losses sustained by banks because of the housing collapse is an example of a VaR failure.
A reputable finance training company can train your employees to be knowledgeable about the concept of “Value at Risk”. According to Investopedia, VaR is the method by which long term risk is assessed against its possible value. Risk officers are employed at various companies to make sure the risk never exceeds what the company can reasonably handle in the event of a crisis. Many financial institutions are learning the hard way what it means to ignore the concepts of VaR.
Every one of these subjects represents important, relevant finance project topics that should be covered in the training and education of anyone looking to go into a career in finance. By educating the fresh-blood on these issues, businesses can improve their chances of avoiding the same mistakes in the future. That’s good for you, and it’s good for the people of America.