what classes to take if seeking a potential risk management career

[Stats CZ]

Hi all,

I am looking at a potential career path in risk management. My situation is I have a MS in statistics but am lack of background or past experience in financial field (any sort of). As far as I have gathered from those job descriptions I see math/statistical skills are desired but financial knowledge to an extent is preferred as well. In trying to make up for this, I am looking to take some courses, perhaps basic ones in finance or accounting (as a fresh start). Could anyone recommend one or two for me so I can at least get some idea what to look for before I officially launch a job hunt in the field?? Thanks!!

Stats CZ

 

[Eugene Krel]

With an MS in stats I suspect you should be able to pick up a descent finance book and learn the basics that you need to know, or at least to guide you towards the correct classes. Try the quintessential Hull book or some of the other books from Master reading list for Quants, MFE - QuantNetwork - Financial Engineering Forum

 

[Yan He]

Take the Risk Management if possible (correct me if I am wrong: I think most MFE program should have risk management class on the curriculum), and any class that would introduce pricing model and behavor of underlying assets would help.

 

[Stats CZ]

With an MS in stats I suspect you should be able to pick up a descent finance book and learn the basics that you need to know, or at least to guide you towards the correct classes. Try the quintessential Hull book or some of the other books from Master reading list for Quants, MFE - QuantNetwork - Financial Engineering Forum

Thanks for the suggestion. Another concern of mine is when writing resume/cv, such book review experience is always difficult to be included and I doubt any hiring manager would really factor it into his/her decision making. I have read a few books talking about VaR, stress testing, credit risks, etc., but it is just hard to meet requirements such as n years of experience in risk management or strong knowledge in risk analysis and so on.. Anyone has succeeded in getting a similar job by completely doing on your own (no courses only book reviewing and others)??

 

[Stats CZ]

Take the Risk Management if possible (correct me if I am wrong: I think most MFE program should have risk management class on the curriculum), and any class that would introduce pricing model and behavor of underlying assets would help.

Thanks Yan for your comments. I am at a place right now where I have no easy access to a course offered regarding risk management solely. And the hard part for me is going for full time education in MFE is just not possible at this point. But I do have a limited course selection from the University that I can enroll in relatively easily.

 

[Shlomi]

My suggestion is that you'll take the FRM/PRM. It will make you study the field by yourself and people will know it since you'll have the certification.

 

[Stats CZ]

My suggestion is that you'll take the FRM/PRM. It will make you study the field by yourself and people will know it since you'll have the certification.

This is very helpful information. Thanks Shlomi.

 

[galad]

Hi all!

I'd like to know whether PRM/FRM certificate can improve my chances to be admitted to some MFE programs?

Thanks in advance!

 

[Stats CZ]

One more question: which one stands out better as a suffix title -- PRM or FRM?? Do people really get both? Is that considered redundant??

 

[galad]

I'm PRM holder. As for me, PRM scope is very similar to FRM. I've read both handbooks. In my opinion, FRM HB is better.

 

[Andy Nguyen]

I'd like to know whether PRM/FRM certificate can improve my chances to be admitted to some MFE programs?

As someone who read hundreds of MFE applications, I want to caution you on the impression that you are padding your qualification with numerous little relevant and in some cases, useless certifications.
The most qualified candidates are usually the ones with a stellar education, relevant work experience, skills and can provide compelling why they are the best choice for the program.
I often find that those who end up in the rejected folder are the ones in the "me too" camp. They pass CFA L1, have several certifications from the Bombay Stock Exchange in options, derivatives modules or what have you. They also mention that either they took/taking FRM/PRM or one of the alphabetical soup out there. More often than not, they fail to explain why they think a certain certification would make them a better prepared candidate. Time is finite and that route may not be the best one to take.

I would gladly take anyone with a solid math, programming over those with loads of alphabets attached after their name.
My point is, if FRM or PRM is your strongest qualification for an MFE program, then you are likely not to get in. And if your FRM/PRM makes you one of the strongest candidates of that program, you are going to the wrong program.

 

[Stats CZ]

As someone who read hundreds of MFE applications, I want to caution you on the impression that you are padding your qualification with numerous little relevant and in some cases, useless certifications.

I would gladly take anyone with a solid math, programming over those with loads of alphabets attached after their name.
My point is, if FRM or PRM is your strongest qualification for an MFE program, then you are likely not to get in. And if your FRM/PRM makes you one of the strongest candidates of that program, you are going to the wrong program.

Andy, as you were commenting on the association between having PRM/FRM and the likelihood of being admitted to a MFE program, did you mean it is similar to applying for a real job somewhere?

 

[galad]

Thanks a lot, Andy, for your response!

 

[Andy Nguyen]

Andy, as you were commenting on the association between having PRM/FRM and the likelihood of being admitted to a MFE program, did you mean it is similar to applying for a real job somewhere?

I don't have lot of experience wrt to the real job thing but I can only imagine that it's tougher to pad your resume because they can and will examine closely everything you put on your resume during the interviews. You can get by with MFE applications since some programs do not interview and just take everyone on face value.

 

[Stats CZ]

I don't have lot of experience wrt to the real job thing but I can only imagine that it's tougher to pad your resume because they can and will examine closely everything you put on your resume during the interviews. You can get by with MFE applications since some programs do not interview and just take everyone on face value.

This absolutely makes sense. To me, I think preparing for and taking such exams is also a way to learn and to find out whether I can be good at the stuff and like to do it as a real job. Any certification certainly is not as powerful as a degree (e.g. MFE), but it is an easier and doable way under difficult situations to make some difference. I won't rule out the chance for me to return back to school in the near future, but I guess I ought to start from somewhere.

 

[Michelle]

In risk management, you need to understand the products well. You need to learn Var, greeks, exposure to various scenarios, etc
You also need to have a mind of a trader and be aware of how these traders "game" the system. It's no surprise that people with front office experience would be appreciated for risk positions.