Does #risk management involve a lot of maths?
Yes and No!
It's a well-rounded discipline.
It's a well-rounded discipline.
For #Actuarial, Insurance, Financial Engineering, Quantitative Finance and Investment Management, Mathematical Trading, and Financial Risk Assignments, you might require a lot of Maths and Statistics.
Is like asking whether we need milk and sugar for making ice cream ;)
Is like asking whether we need milk and sugar for making ice cream ;)
For #Auditing and #Internal #Controls, you need to have a decent understanding of statistics, #probability models and applied #mathematics.
For ERM - Enterprise Risk Management Systems Design, Project Implementation and installation, you need to know many subjects such as risk computing(programming in R or Python or MATLAB/C++/VBA, etc), Cost, Financial and Management Accounting, Internal Auditing, Internal Controls,
and Mathematics, and preferably some Econometrics, to measure up the predictable risk consequences (selecting and computing the severity and understanding the frequency distributions etc.).
Operational Risk and Financial Risk are treated as different concepts in the risk management literature, and similarly, risk and uncertainty are not the same,
and hence measurement methods vary across risks and the processes mapped therein, using a selected RM(Risk Management) Standard and the laid-down taxonomy!
#ISO31000
#COSO
#COBIT
#ICASA
#ERM
#ISO31000
#COSO
#COBIT
#ICASA
#ERM
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