I am an L2 candidate and currently evaluating my options/job prospects and would like to know that if CFA is highly relevant to the Risk Management profiles in Banks? Will it make little sense to pursue the Charter if I wish to stay in Risk? It would also help if some of you could tell me whether it is *absolutely a must* to do a PHD/MFE to grow in the Risk Management department or if FRM/PRMIA does the trick as long as you get the entry in the department and work hard. Few more clarifications: How is the work like, in terms of maybe work-hours per week? Are there any possibilities of travel whatsoever? And what would be the typical entry-level profiles that I may contemplate? How does the pay/growth opportunities compare with a typical ER analyst role? My background is fresher, non-finance UG, MBA(Finance) from a reputed institute and CFA L2 candidate. Many thanks to all those who managed to read till here.
I kind of think it is necessary because: a) People come check out the risk management and a quick check says that degrees matter. Having a Ph.D. is best for due diligence. b) How much are you really going to learn from FRM, etc.? Lots of risk literature is pretty tough stuff.
The Society of Actuaries has a new credential called CERA - Chartered Enterprise Risk Analyst. However getting that would be harder than getting CFA charter. They also have a specialty track in ERM. In my personal and probably biased opinion, there is no one better at managing risk than actuaries.
Poof. Actuaries are second tier wannabes. Ph.D. Statisticians eat them for breakfast.
needhelp Wrote: ------------------------------------------------------- > The Society of Actuaries has a new credential > called CERA - Chartered Enterprise Risk Analyst. > However getting that would be harder than getting > CFA charter. They also have a specialty track in > ERM. > Getting that would be harder than a CFA charter?! I got $10,000 says that I can pass all the tests/online course/etc in a month (as long as they let me do it, yada, yada). It took me longer than a month to get all my CFA tests out of the way.
JDV you are wrong. Have you even looked at an actuarial test? I know your opinion is biased. So is mine. But only one of us is both an actuary and a CFA.
needhelp, you are an FSA and CFA??
needhelp Wrote: ------------------------------------------------------- > JDV you are wrong. Have you even looked at an > actuarial test? > > I know your opinion is biased. So is mine. But > only one of us is both an actuary and a CFA. So put up the $10K and let’s see who is wrong.
[grabs a good seat, and popcorn]
rohufish Wrote: ------------------------------------------------------- > needhelp, you are an FSA and CFA?? guilty as charged
JoeyDVivre Wrote: ------------------------------------------------------- > needhelp Wrote: > -------------------------------------------------- > ----- > > JDV you are wrong. Have you even looked at an > > actuarial test? > > > > I know your opinion is biased. So is mine. But > > only one of us is both an actuary and a CFA. > > > So put up the $10K and let’s see who is wrong. problem with this is that you cant take the exam in a month. SOA only offers exams twice a year. I am NOT saying that you arent some brilliant old goat who can solve problems with one eye closed and watching TV. I am saying that actuaries are the premium risk managers.
Look what has happened to my poor little cute thread. Ravaged… *sigh*
there is nothing better than two unhumanly smart guys duke it out over who is smarter one a phd another a fsa cfa [gets his 3D goggles too]
rohufish Wrote: ------------------------------------------------------- > there is nothing better than two unhumanly smart > guys duke it out over who is smarter > > one a phd > another a fsa cfa > > credentials do not equal smarts. PhD only means that you are disciplined. i dont consider myself smarter than most of you and certainly not smarter than JDV. i just have the benefit of being on both sides - assets and liabilities.
needhelp Wrote: ------------------------------------------------------- > JoeyDVivre Wrote: > -------------------------------------------------- > ----- > > needhelp Wrote: > > > -------------------------------------------------- > > > ----- > > > JDV you are wrong. Have you even looked at an > > > actuarial test? > > > > > > I know your opinion is biased. So is mine. > But > > > only one of us is both an actuary and a CFA. > > > > > > So put up the $10K and let’s see who is wrong. > > problem with this is that you cant take the exam > in a month. SOA only offers exams twice a year. > > I am NOT saying that you arent some brilliant old > goat who can solve problems with one eye closed > and watching TV. I am saying that actuaries are > the premium risk managers. Hmm. I think you can (except for one of them) and I don’t know anybody in hedge fund land who has an actuary as a risk manager. I’ve not seen very many actuaries at risk management conferences (although I’m not sure I would know exactly).
And look what happened to hedge funds. I rest my case.
I’m not sure if this is a constructive discussion. A good knowledge of both statistics and actuary math is benefitial in risk management. From what I’ve seen on average actuaries are pretty well equipped for risk management because of all the tools and models used in actuary math. However, someone who has PhD in Statistics can learn all those tools himself and be a great CRO.
I disagree with maratikus and needhelp. JDV is right - PhDs definitely trump actuaries. I think part of the problem is that historically, actuaries managed very mild risks - mortality, house fires, health risks, etc. - that dwell in “Mediocristan”. Actuaries are, through no fault of their own, ill-equipped to manage the kinds of risks that exist in the financial markets (Extremistan). (Yes, I like Taleb and Mandelbrot a great deal.) Neither, for that matter, are CFA and FRM types. JDV, I would caution that the exams are more difficult than you think. There are PhD statisticians who didn’t pass all of them on the first try, so keep that in mind. Obviously I think you’re very intelligent, but keep in mind you have 6 minutes per problem to solve life contingencies problems that you’ve probably never seen before.
So put up $10K… You guys are such whiny wu$$ies. Oh they a very diifcult exams, but I am afraid to risk any money. Do you think that whiners ever succeed in finance? Be men! Take risk!
lol…lovin it