Is doing a graduate degree in risk management and insurance worth the money? Why?
@GARP_Risk @actuarynews

Depends!
#riskmanagement is a broad area which can offer various lucrative roles, especially in the financial sector.
They are a lot of risk management degrees available in the market.
Which one would you like to study?
And where it is being offered?

If the degree will focus more on Insurance Underwriting Management and related Risk Financing Courses, I won't advise you to do such a qualification.

The scope of such a degree won't go beyond Life and P&C Insurance Firms.

If the degree focuses more on Financial Risk Modelling, #ERM, #Cybersecurity, Information Security Risk Management, Lean Six Sigma and Quality Management, R and Python Coding, C language, SQL, NOSQL,VBA,MATLAB, EconoPhysics & #Econometrics, I would advise you to do such a degree.

But the questions remain =>
•How Quantitative/numerate the Degree is? A “GOOD DEGREE in Risk” should include => Inferential Statistics, Time Series, Applied Time Series, Regression Modelling and Diagnostics, Monte Carlo Simulation Methods, Experiment Design and RCTs,

What is the difference between financial econometrics, econometrics and quantitative finance?
@GARP_Risk @CQFInstitute @SOActuaries

Financial Econometrics basically utilizes Financial Market Data to build mathematical and statistical financial models and later analyze the statistical significance and make predictions.

It is generally used by risk managers and economists to predict(forecast) and study the return market characteristics. GARCH models and other Time Series Models are used to study the pattern of Return Volatility Clusters, Tail Dependence Events, Covariances,

Heavy Tails Phenomenon, Serial Correlations, Mean Reversions, Random Walks, White Noise Disturbances, Risk Migrations, Contingent Claim Volatility Smiles, Probability of Defaults, Credit Rating Matrix Volatility, Value at Risk, Deviations from Normality and other prices of assets

Model Validation, Cross-Validation and Selection are also topics of interest that fall within the domain of Financial Econometrics. It is a field which is more dependent on Time Series (inter-temporal) Analysis using data spread over a lookback period.

Would you start your career as a model validator in a major bank if you hope one day to become a front office quant?
@GARP_Risk @actuarynews
@Actuary_Dot_Org @actuarialpost
@iSixSigma @artemisbm @SOActuaries
@CQFInstitute @aier @CFAinstitute

Many Financial / Middle Office Risk and other Quantitative Economics/ Financial Market-led research roles interface at one level or the other across FIs.
I don't know if a bank uses Employee Rotation, to foster employee learning, training and development across the 3LOD Model?

But, most of the banks, in the Advanced Markets, to use job rotation as a tool, to disseminate professional knowledge and understanding of financial market operations, among their employees.

I started my career as a Derivatives Dealer in the front office, but later ended up in the Middle Office Risk Control Unit, and further onwards in my career, moved directly into the Front Office, as a Fund Portfolio Risk Controller

Model Risk Assessment and its Validation now exists as an independent function among most of the large banks, funds and insurance firms.

If the connotation of risk is an intertwined concept and is difficult to quantify, how does a Risk Officer look at it?
Is there any way other than using copula models to determine systemic risk with long tails or a black swan event?
@CQFInstitute @GARP_Risk @SOActuaries

I guess we are worried about Market and Credit Risks or other interrelated financial risks which can create conjoint loss given events.

Any #Gaussian distribution model will enable you to model and predict potential Operational, Liquidity and Balance sheet AL - (Asset - liability) Mismatch, Market and Credit drove losses under normal market conditions.

But in the financial sector, the trend has been to emphasize more on #material and #quantifiable risks, which adhere to SPC #Statistical Process Control such as Credit and Market risks, at least in the context of financial instruments with a #linear pay -off.

Research has shown that even in the financial sector most of the #tail #risk event impacts are #Operational in nature=>
•75- 80% of the loss given events are classified as Operational #LGE - (LOSS GIVEN EVENTS),
•Only 15%- 20% of the LGEs are driven by Market or Credit or both

What are the different ways in which banks can reduce and manage different types of risk?
@GARP_Risk @actuarynews @SOActuaries @RiskDotNet

By understanding what risk is in terms of its purported definition?
If you get the definition wrong, you won't understand the technical expression in either theory or practice.
So, get that right first!

#Risk is a two-sided phenomenon, like a coin!

2. The one side of the coin presents an Opportunity!
2.The another side of the coin presents a Threat!

On which side would you like to do betting?

The same holds true for a financial institution such as a bank.

The interpretation of #risk depends on your insights, your hunch, your gut feelings, your emotions, and last but the not least, your cognitive biases.

To understand Risk Management as a subject, you need to go deeper into the understating of the Psychology of Risk Perception.