Position profile: regulatory agencies
Taliya Cikoja SA Fin, Senior Analyst, Australian Prudential Regulation Authority
Industry sector: regulatory authorities
How did you get to where you are today?
I completed a Bachelor of Finance (Honours) at La Trobe University. I wanted to have a career in the finance industry so I purposefully chose a degree which specialised in finance. However, the degree itself also had a significant focus in economics, commerce and law. I think that this was very useful as a result it helped me get a well-rounded perspective of finance.
Following my Honours degree I became an Associated Lecturer in the School of Business at La Trobe University, teaching Finance whilst I was completing a Masters in Economics. At the time, I was conducting research into corporate governance because I found this area particularly interesting. Whilst researching and lecturing, I realised that I wanted to gain some practical experience in the finance industry and in particular apply some of my corporate governance research.
This led me to apply for a position at the Australian Prudential Regulation Authority (APRA). APRA is the prudential regulator of the Australian financial services industry. It supervises banks, credit unions, building societies, general insurance and reinsurance companies, life insurance, friendly societies and most members of the superannuation industry. APRA’s objective is to enforce prudential standards and practices designed to ensure that, under all reasonable circumstances, financial promises made by institutions are met. As such,
APRA reviews the governance structures of regulated entities, amongst other things, in order to achieve this objective.
What does a typical day involve for you?
As a Senior Analyst at APRA, I have a portfolio of institutions from the financial services industry (for example Superannuation funds). It is my responsibility to review these entities using an approach which is primarily risk-based, consultative and in line with international best practice.
A review of an institution will typically involve speaking to members of the board and executive management, and reviewing relevant policies and procedures in relation to areas such as: risk governance, strategy, financial resources, liquidity, operational risk and market and investment risk. From such a review, I issue the board with my report which outlines areas for improvement.
Of course, being a prudential regulator is never dull as there are usually ad-hoc matters which I have to respond to quickly. For example, the sub-prime lending crisis in the US and trying to determine its flow on effects on the Australian market and financial services institutions.
What interpersonal skills are essential for your role?
Being a prudential regulator can be difficult sometimes because you’re required to have a really good awareness of the issues arising in the financial services industry at all times, as well as those that could potentially arise.
In addition, having strong analytical skills is pretty important because you usually have to digest a large volume of information about a particular company to determine what is considered appropriate industry practice. This is where having good communication skills are beneficial, to help convey your findings to the board of a company in a clear and concise way.
What sort of person is good in role and type of organisation?
People who are inquisitive and analytical by nature and are keen to dig deeper into an issue often find themselves working at APRA. In addition, those people who like working with companies in a consultative manner enjoy the work at APRA.
Being successful at APRA means using strong analytical skills and applying these skills to a financial services company in order to find areas for improvement. This, in turn, adds value to their operations and strengthens the Australian financial services industry.
What do you find the most rewarding about your current role?
The most rewarding aspect of the role is knowing that I’ve added value to a particular company’s operations, whilst also helping to protect the financial promises made to Australian consumers.
What do most people find challenging/difficult about a role like this?
As a regulator, it can be difficult to try and stay ahead of the financial services industry and foresee potential areas of concern where APRA may need to respond quickly. Of course, ensuring that APRA’s response to any industry matter is a considered and relevant one is also a challenge.
What were you looking for in an employer when you took your current role?
I was looking for an employer who was able to provide sufficient job diversity which allowed me to build on a variety of current skills (for example, analytical and research skills) whilst also giving me exposure to new opportunities where I could gain more experience.
What benefits are essential to attract the best people?
Having a strong performance incentive scheme that uses both quantitative and qualitative measures always helps attract good people. However, to ensure that they remain within an organisation, it is important to have a strong culture where things such as study support, flexible working arrangements and positive working environments are encouraged.
What other jobs and career paths would you consider in the future?
Through my role in APRA, I have developed a keen interest in risk management. As a result I would like to pursue a career in this field.
How do you keep up to date?
Becoming a member of relevant associations such as Finsia helps me to keep abreast of current issues. I also subscribe to a number of different newsletters, magazines and periodicals. It’s also important to attend industry events such as seminars and conferences.
Are you considering any study or professional development in the future?
I’m currently undertaking a Master of Risk Management degree at Monash University which I’m scheduled to complete at the end of 2008.
Why did you become a member of Finsia?
I initially became a member of Finsia when I was a university student. It gave me a real insight into the industry prior to entering it professionally. By maintaining my membership, I can keep abreast of industry issues whilst also developing valuable professional networks within the industry.
What tips do you have for aspiring financial service professionals?
A general tip for success in the work force is to try and find an area of interest and then look for roles which facilitate that interest. If you’re undertaking a role which you have an interest in then you are more likely to enjoy the job and benefit from it.
It may mean that you have to undertake a number of different roles before you’re able to refine your interest. However, you have to remember this is not such a bad thing. Whilst you’re on your search for the ideal role you are collecting experience and knowledge to better equip you in the future and build on your career portfolio.