Studying Industrial Economics, without learning cost accounting, quality mgmt, or operations management, is a waste of time.
Nobody cares who Lagrange, Hotelling, Cornett, and Nash were if you cannot explain basic outlay to the board of directors.
Universities are just pathetic.
Similarly, many financial economists have no understanding of financial accounting concepts.
Economics Education needs a complete revamp at unis.
If economists cannot understand basic accounting entries, then how will they manage risks at Fis?
Doing International Economics, but, not being taught International Marketing, and Relationship Management?
These are just some examples of why many econs students cannot find work.
They cannot relate to practical examples and applied for work in industries.
The same holds true for #Development Economists.
Doing a degree in Dev Econs must include public sector management, economic policy, law, anthropology, sociology of development, knowledge mgmt, talent management, gender studies, and history in addition to the usual modules.
Just interviewed an econometrics major from the UK a few days back for a potential quantitative role in the UAE.
The candidate didn't have any clue as to how he would add value to the bank and its departments.
Just talking about models and theory.
Got rejected flat!
This mini-thread is not a criticism.
It's the experiences I am sharing about candidates who get rejected by financial firms and elsewhere.
Economics should be made more relatable and palatable as a subject.
Otherwise, they shall be many dark nights in the unemployment pipeline.

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More from @SAH16928046

Apr 22
The lawyer's approach to assessing materiality
Proof Reading documents inside out more as an academic writer than a lawyer, highlighting headers aka rubrics & footnotes, meticulously checking punctuations, referencing with case law and statutes, using a legal dictionary, etc
Of course, in risk management, we do refer contracts and other legal manuscripts to lawyers who offer their fully qualified opinion on legality, materiality, and liability fixing.

But, quantifying legal risk is a big challenge for banks and other financial institutions.
Especially, at Commerical / Retail Banks, the nature and variety of lending are such that multiple legal risks arise at the transaction initiation stages, and later during post-authorization phases.
CROs usually don't come from a legal background.
Hence, that is an Ops risk!
Read 4 tweets
Apr 20
Stochastic and Deterministic LGD Loss Given Default Models are different.
Many bankers are unable to understand the different mathematical assumptions that can make the computations.
That is a big risk per se!
@BIS_org
#model #Risk #Validation #Creditrisk #FRM
#MachineLearning
What is a hazard rate assumption?
How can credit risk be modelled using hazard rates?
This is beyond an average #banker.
Most primal bankers only understood the 5 or later the 7Cs of credit.
Accounting, cashflows, creating a charge on assets, foreclosure, special asset mgmt, etc
Actually, Quantitative Risk Management has not helped at all, in my opinion.
Blindly applying maths and statistics has made decision-making worst.
Banking was about relationship mgmt, business model analysis, accounting trickeries, branch operations, etc
Now it's like a lab work
Read 4 tweets
Apr 17
(December 2017) Paul Klemperer "Auction Design in the Financial Crisis" via @YouTube
Monetary Economics is a well-established field.
Central banking practices may differ from what is taught to Monetary Economists.
Because CB is not just an executioner of the monetary policy but is also a banker to the government and the apex bank of the country per se.
Hence, CB Balance sheet expansion and contraction have consequences for the broader economy.
Read 9 tweets
Apr 12
Risk Management is not just about producing tons of reports that nobody wants to read in the office.
I am very angry to note that most of the #ERM/Risk Desks just produce day-end reports, which end up in the dustbin.
Risk Dept. should not be a tick the box function.
what is the point of preparing #VaR Reports, when the fund manager does not understand basic probability?
Rubbish!!
There is no point in hiring a world-class hard science PhD to do risk management work at financial institutions or elsewhere, if the board members have zero numeracy and data science skillsets, the staff in front and back offices have poor technical and academic backgrounds, etc
Read 8 tweets
Apr 5
Which is a better career option, an #MBA in finance or financial risk management?
I am not an admirer of the MBA Degree Program. So I think I should not be answering this question per se.

But, let me give it a try.
MBA is a professional qualification, unlike MA / MSc / MS / MPhil Degree programs.
How you will benefit from an MBA degree, is entirely up to your understanding of the challenges emerging in the workplace.
MBA Finance is neither a fish nor fowl qualification.
If you would like to learn financial theory, derivatives, risk and economics, you will be better off by doing a proper MS or MSc in Financial Economics or Applied Finance (Financial Engineering).
Read 26 tweets
Mar 29
MBAs and even DBAs find it very tough to publish in high impact factor journals.
Most of the management teaching done at business schools relies on the case study method.
The staff is not conversant with modern statistical and mathematical methods used for writing research papers
My advice to all management studies/ old business school style professors and adjunct faculty members is that they should do MOOCs.
At their age, they cannot enrol in a hard science degree program.
The most worrying thing that I have come across is that departments where full-time teaching staff cannot publish articles/ monographs in top peer-reviewed journals, start publication services of their own to accommodate failure.
In-house Discussion Papers Journal, etc
Imposters!
Read 9 tweets

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