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Investment banking vs Consulting

 
forum comment
#0 Investment banking vs Consulting
 
Confused dude
07.09.10 00:00
 
Hi All,A very generic question but would be very userful for me. -I understand that there is a devide between Invesment banking vs Management Consulting but where as I do understand Management consulting but fail to understand what investment banking profiles we are talking about, are we just talking the front office trading/wealth management/mergers and acquisition roles or the back office roles like risk management also qualify to be compared with management consulting.I am talking about the likes of big 4s not the strategic consulting firms.Thanks
 
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#0 RE: Investment banking vs Consulting
 
Mars A Day
07.09.10 00:00
 
Risk - middle office, and increasinly front office. Not back.M&A, trading and wealth management - very, very different areas, cant bundle them together. Big 4 - big in risk advisory, especially Pillar 2 - 3 type work, only EY seem to be strong in Pillar 1 currently. What exactly are you trying to establish?
 
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#0 RE: RE: Investment banking vs Consulting
 
Confused dude
07.09.10 00:00
 
In simple terms when we talk about investment bankers taking home great amount of money are we talking only about front office jobs or a Risk manager would be considered in the same league.how would a risk manager in investment bank compare to a risk consultant
 
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#0 RE: RE: RE: Investment banking vs Consulting
 
Mars A Day
07.09.10 00:00
 
Ah ok. Clearer.Much like consulting the front office of IB has its fair share of poor performers. It's a popular myth they are all millionaires on mega bonuses. Also with far less liquidity to play with, revenues in front office is falling away, and if you look at the current trend to kill off prop trading and push those traders back into flow, then the bubble is starting to shrink. So comp coming down in FO.Risk Managers have seen their stars rising recently, and of course it does depend on what you are doing in risk. A programme manager leading a major SII implementation is likely to be pulling in some serious cash, a compliance office much much less. What really pushes the ££ of risk managers up currently is product knowledge. If you know how to price the risk on a weird looking derivative you're in a good position. Unless you are really in a hot area, or very senior, top end for a risk role bank side would be circa 120 - 160, with a poss bonus element. Risk consulting would be similar at top end, although in MC you could surpass the CRO level in bank by making it to Director or Partner level within a risk practice.
 
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#0 RE: RE: RE: RE: Investment banking vs Consulting
 
Confused dude
07.09.10 00:00
 
@MarsGreat insight.. really useful for me to plan my next moves. many thanks!!
 
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