Risk vs FP&A to IB?

Choosing between a Risk internship at a big commercial bank and an FP&A role at an F500 company depends on several factors, but for breaking into investment banking, each has its merits:

1. Risk at a Big Commercial Bank:

   • Relevance to Banking: Working in risk at a commercial bank is closely aligned with the financial sector and provides exposure to credit analysis, market risk, and regulatory frameworks, which are valuable in investment banking.
   • Skill Development: You'll likely develop strong analytical skills, understanding of risk management tools, and financial regulations, which are pertinent to IB.
   • Networking Opportunities: Being in a bank, you might find more networking opportunities with professionals in the investment banking division.

2. FP&A at an F500 Company:

   • Broad Business Understanding: FP&A roles offer insights into corporate finance, budgeting, and strategic decision-making processes of large corporations.
   • Analytical Skills: You will enhance your financial modeling and forecasting skills, which are crucial in IB.
   • Industry Exposure: This role can provide a deeper understanding of industry-specific financial operations, which can be beneficial if you're looking into IB sectors that align with the particular F500 company’s industry.

Recommendation: If your goal is specifically to transition into investment banking, the Risk internship at a big commercial bank might edge out slightly better due to its direct relevance to the financial sector and potential for internal networking. However, if the F500 company is a leader in an industry you are passionate about, or if you value the broader corporate exposure, then the FP&A role could also serve as a strong stepping stone, especially with solid performance and strategic networking.

Sources: Do many young I-Bankers pivot to F500 ladder? Seems like you sharks would dominate, yeah?, Corporate Finance Q&A with accountingbyday, BJM85, STorIB, and djfiii, Advice For Sophomore Summer Internship, My Four Year Plan, If your SA internship is canceled, but you get FT offer, will you still recruit for "better" job?