Describe a Time When You Identified a Financial Trend or a Risk? | FP&A Interview Question #29

What if missing just one financial trend could cost your company thousands, or even millions, of dollars?

In FP&A spotting risks and trends early isn’t just valuable. It can be game-changing. Today, I’m going to walk you through how to confidently answer one of the classic FP&A interview question: “Tell me about a time when you spotted a financial trend or a risk.”

Whether you’re prepping for your next FP&A interview or just want to sharpen your skills, this guide will break down the question, share a real-life story, and give you a plug-and-play template using the STAR framework to help you shine.

Let’s dive in!

How This Question Shows Up in Interviews

This question might come at you in many different ways, such as:

“Tell me about a time your analysis uncovered a risk?.”
“Describe a situation where you identified a financial trend?.”
“Have you ever caught something early that others missed?”
“Could you share an example of when you used data to drive a business decision?”
“Walk me through a time when you saw something in the numbers that led to action?.”

So why do interviewers ask this?

They’re not just curious if you noticed something unusual. They want to see how your brain works. Can you connect the dots? Can you take action that protects the business or even helps it grow? That’s the real test.

What Interviewers Really Want to Hear

Many candidates simply say, “I noticed payments were late.” Okay, that’s a start, but what really stands out is when you say:

“I saw a pattern, I warned the team, I changed how we worked—and we saved ₹2 crore.”

In FP&A, you’re never working alone.

Think of it like a football team. You pass the ball to your teammates to score a goal. You need to show how you collaborated with sales, legal, operations, and other teams to solve the problem.

Breaking It Down: The STAR Framework

To tell your story clearly and effectively, I recommend using the STAR framework. It’s a simple, four-step method to structure your answer like a bedtime story:

S – Situation: What was going on?
T – Task: What was your responsibility?
A – Action: What did you actually do?
R – Result: What happened because of your actions?

Think of it as telling a story: What was the problem, what did you do about it, and how did it end?

A Real-Life Example Using STAR

Let me tell you a story about a client we’ll call Big Basket. They were huge for our business. About one-fourth of our revenue came from them.

Situation

One day, Big Basket started paying us late. First by 15 days, then 30, then 60 days. Most of the company, especially sales, thought it was no big deal.

But I felt something was off.

Then I noticed more warning signs:

They were ordering less and less.
Industry news about trouble in their sector.
Rumors of layoffs at their office.
Their financials were worsening with more debt and mounting losses.

It was like hearing ice crack under your feet. And you don’t wait until you fall in.

Task

As the FP&A analyst, my job wasn’t just to say “payments are late.” I had to figure out:

How bad was the risk?
How exposed were we?
What should we do next?

My task was clear: protect the company without damaging the relationship with one of our biggest customers.

hink of it like being a lifeguard. You see someone struggling in the water, but you don’t panic. You assess quickly and act smartly.

Action

Here’s what I did step-by-step:

Collected 12 months of payment data on Big Basket.
Reviewed credit reports from outside agencies and saw they were late with everyone, not just us.
Met with the sales team and advised that for new orders from Big Basket, we should take part payment upfront.
Created a dashboard for senior leadership showing how much revenue was tied to this risky client.
Suggested we start engaging new, smaller clients in safer industries.
Advised the accounting team to increase the bad debt reserve as a precaution.

Every action was like adding airbags before a potential crash. We weren’t just protecting ourselves; we were preparing a backup plan.

Result

Before Big Basket went bankrupt, we reduced our exposure by 40% and collected more cash upfront. Throughout the process, I kept senior leaders including the CEO, Head of Sales, and CFO informed.

Plus, by shifting focus to new clients, we added 12% more revenue by the next quarter.

Instead of falling into a hole, we built a bridge and walked over it. That’s exactly the kind of story interviewers want to hear—not just that you saw a red flag, but how you solved it, step by step.

Your STAR Framework Cheat Sheet

S – Situation: What was wrong?
T – Task: What was the project or issue about?
A – Action: What exactly did you do?
R – Result: What changed because of you?

If you want to prepare for FP&A interviews, start building your own STAR stories.

Pick a project where something didn’t feel right. What did you notice? What action did you take? And finally, what difference did it make?

Final Thoughts

Identifying financial trends or risks is a critical skill in FP&A, but it’s what you do after spotting them that truly matters. Showing your ability to analyze, collaborate, and act decisively can set you apart in interviews and in your career.

So, what’s your STAR story? Share it in the comments below. I’d love to hear how you’re preparing to tackle this interview question. And if you found this helpful, don’t hesitate to explore more FP&A resources and certifications to level up your skills.

Remember: FP&A isn’t just about numbers. It’s about protecting and growing the business. Spot the trend, take smart action, and lead the way.

If you’re serious about accelerating your FP&A career, consider the Certified Global FP&A Professional (CGFPA) offered by FP&A Professionals Institute.

Good luck with your interviews, and remember: the right preparation can make all the difference!

You can find more information about this and other FP&A resources, including books, courses, and free templates, on the FP&A Professionals website www.fpnaprofessionals.com

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