Which is the best choice, to do an MSC in professional accountancy or an MBA after an ACCA completion?
Tough question.
If you can do your ACCA(plus your Oxford Brookes BSc Hons Accounting degree) and later clear the ICA UK (of Wales and England) Exams, nothing like it! later pass all the professional body requirements(CIPD) and turn into a full FCA Member?
Sign off accounts and financial statements as the CFO or get yourself the job of an Audit Head.
Accounting positions are fairly powerful jobs in the Corporate World.
Of course, an MBA(from LBS or INSEAD) later on would really give your career a big boost!
Not too sure about MSc Accounting! it might turn out to be useful if you are on your way to doing a PhD in Accounting or Internal Controls/Auditing or if you don't have much industry experience to join an MBA Program straight away after passing your ACCA Exams perhaps?
Not too sure where that fits in?
I am not a big fan of doing academic degrees in technical subjects that require further professional upgrade and box tick from a chartered organization or a body or an institute.
This especially applies to both Actuarial Science and Accounting.
Cant compare the two propositions.
Let’s summarize again below =>
ACCA will give you a practical insight into the world of Finance and Accounting(plus Audits)
MBA will do you good in either of the two cases.
That is after you have gained ample experience on the CV!
MSc Acct is just fine if you would like to do a PhD OR would like to spend some time learning a bit more of accounting on the academic side after doing your ACCA!
Which are some stylized failures of Risk Management?
It is the only subject when turned into a profession, which fails to deliver in SVA terms in most of the cases, as witnessed now outside the Insurance Sector
Insurance is a different game because the profession is led by well-trained quantitative professionals such as Actuaries
Why it has not worked well outside the Insurance Sector/s?
The multiple reasons for the failure of Risk Management and Auditing Departments at firms could be the following =>
What is the Gaussian copula and how to use it to derive the joint probability of the default of two assets?
This is an interesting question, but I would like to discuss its implications and how this kind of model added fuel to the global financial crisis fire back in 2007.
Risk Management is like a Greek Tragedy, where actors laugh to express their sorrow. Hence, here what mimics laughter is the Normal (Gaussian) PDF and its assumptions.
According to Hendry and Richard (1982), a final acceptable model should
satisfy several criteria (adapted slightly here). The model should:
● be logically plausible
● be consistent with underlying financial theory, including satisfying any
relevant parameter restrictions
●
●have regressors that are uncorrelated with the error term
● have parameter estimates that are stable over the entire sample
have residuals that are white noise (i.e. completely random and exhibiting no patterns)
● be capable of explaining the results of all competing models and more.
When we talk of IR #Interest#Rate#Risks we must understand the markets in which this product operates, and the fundamental pricing, trading, and hedging dynamics of this financial #derivative asset class.
Banks normally use IR Derivatives and Structured Products for on and/or off-balance-sheet ALM Asset Liability Management and Immunization, Bond Risk Hedging, NII Risk Hedging, Arbitrage Opportunity Exploration using the treasury based fixed income desks, Rate Speculation, etc.
Of course, we have other financial market participants such as Pension Funds, Hedge Funds, Insurance Companies, and several other specialized asset management firms, that have strategies and asset allocation models, which use IR derivative for both Macro and Micro-hedging.
What factors are considered by banks when assessing credit risk to customers?
Credit Risk Management is part of IRA - Integrated Risk Assessment that is carried out by banks to measure transaction and obligor default risks.
The credit risk assessment goes through stages =>
Front Office (RMs at the branches and/or Head Office prepare the credit application/ Clp for further processing).
Middle Office (Financial Risk Management Analysis for checking the Basel Pillar 1/2 Compliance Requirements, to check the BRMC - Board Risk Management Approved and Assigned Risk Appetite Limits etc.)
How would you define Finance Roles across FI and Non -Fi Settings?
Finance work is required both within and outside the financial services industry. I can share my collective understanding of roles(that might require Economics or Finance related skillsets) based on my experiences, that I have collected on my CV.