Risk Manager(ERM/FRM/Actuarial Sciences/IS031000) Profile picture
Financial Risk Management, Commodities, Energy, Metals, Derivatives & Analytics. An Avid Economics and Military History Reader. Philosophy & Evolution
@RobsonReis_®️ Profile picture 1 added to My Authors
22 Nov
You are an entry-level risk analyst at a financial institution working in investments/portfolio management?
What you need to do to make yourself relevant.
This thread is about that....
Dos and Don'ts of a #Risk Profession =>

Do not =>
1. Don't brag about your degree/uni
2. Don't brag about your mathematical skills
3. Don't brag about your academic knowledge
4. Don't brag about your being proactive compared to Audit or Compliance or any other back-office unit
Dos =>
1. Do bring yourself down to the level of those engaged in the front offices/sales, etc.
2. Do try to understand the Enterprise IT Systems, Enterprise and Business Architecture
3. Do integrate your silo with the ERM Program
4. Do always compare theory with reality.
Read 15 tweets
21 Nov
Always do study at a university which has an influential alumnus.
Networking helps more than anything else when you are looking for a job or an opportunity to undertake a startup.
Please, be mindful of the fact that degree is just a decorative sketch framed for the walls.
Listening to a speech given by Late #Lee #Kuan Yew,
where he was advising undergrads about the paths they should pursue in 1994.
For Mr Lee, the #Oxbridge epoch was well over back in the 90s.
The #Yanks and their universities dominate the global corporate world and job networks.
The most interesting aspect of this speech made by then Minister Mentor Lee was that he encouraged Far-Eastern Asian Students such as the Singaporeans to do a first degree in Electrical Engineering and later back it up with an Ivy League #MBA.
What superb advice it was!
Read 6 tweets
19 Nov
I am flabbergasted to study that South Korea, which has outstanding macroeconomic statistics, is lagging behind other countries in terms of creating jobs for young people!
Why is that?
Actually, Macroeconomic Statistics are not always very helpful.
They give you the overall aggregate picture, which might help look at the larger picture.
What lies underneath that canvas is the real truth.
Excellent GDP Growth Rate track record since the 1990s opening up of the economy by #Narasimha Rao Govt.
The huge build-up in FOREX Reserves.
Massive growth in #FDI and Portfolio Institutional inflows.
But, the Avg. Indian struggles to find decent work, if any at all.
Read 7 tweets
6 Nov
Skill harvesting is akin to cropping agriproducts.
You till the fertile place, select the seeds, provide exposure to sunlight, start the soil sowing process, apply fertilizers, waters, and other chemicals, wait for the germination to turn into a crop, & start harvesting.
Governments that invest in Human Capital have benefited a lot in terms of socio-economic development.
It is not just about making money to sustain oneself, but, liberating a human being from slavery.
The political dividends reaped from such a policy are immense!
E.g. Singapore.
Compare #Singapore or other SE-Asian Nations with the Energy Rich Nations, which rely on #petrodollars in addition to Natural Gas/LNG Exports, such as the #GCC Nations.
The quality of economic development is completely different, in nations where knowledge capital exists
Read 16 tweets
4 Nov
A boss who initially forgives you for the mistakes you make and allows you to freely learn from the errors you commit during the early days is probably the best person you can work with.
Not everyone is so lucky.
I always say you choose your boss, and your organization early on!
A bad boss will destroy your career.
Many cannot or do not have the choice to select firms or individuals they work with.
That is a simple luxury.
Especially, in countries where poverty and unemployment exists, hence, young professionals don't have much choice.
Read 7 tweets
22 Oct
Why is Financial Risk Management important for students to select as an elective in a Banking, or Finance or Investments Specialization Pathway?
FRM became popular during the 1980s when some top Wall - Street Banks hired quants to develop Summary Portfolio Metrics and reports on a day-end basis. E.g. the techniques pioneered by JP Morgan, LTCM and other top banks paved the way forward.
The credit for the development and emergence of this new subject area from within the literary domains of both Financial Economics & #Actuarial Science that has revolutionized decision-making, problem-solving and structuring methods across industries goes to working professionals
Read 20 tweets
21 Oct
I still don't know why so many IAD Officials detested my work at some firms where I was chosen to work as a CRO/ Lead Risk Consultant?
After all, the Risk Desk and the IAD should work as partners, but, I do feel there is an unspoken rivalry between these two lines of defence.
Turfs warfare?
Internal Audit was the bespoke risk management desk before Risk Desks were set up by the corporate boards across the globe.
Auditing and Credits Departments at Banks are bigger adversaries of Risk as an independent reporting function compared to the business desks.
You can add #CFO in charge of Finance to the list of another back-office function/ department which hates to work with the #CRO, Chief Risk Officer.
I remember my encounter with a Head of Finance at a bank, who insisted on computing capital charges & CAR using @BIS_org weights
Read 5 tweets
18 Sep
Currency Devaluation or Depreciation might be helpful in outward paying economies that have an export-led model of growth.
Economies where the majority of the derived demand is based on domestic commercial activity, might find currency price reduction as a harrowing systemic risk
The first thing that an IMF Program desires from its client states is that they should devalue or assist market-based depreciation of their nominal exchange rate.
In this way, the economy can instil a shock by means of which macroeconomic adjustment will take place!
Reducing CAD
All client states that borrow to finance the balance of payments gap, working under the IMF Program, lose their economic sovereignty and turn into satellite states.
The International Political Economy of the IMF Structural Adjustment Program needs understanding.
These are tools
Read 17 tweets
18 Sep
Slowing population growth can have broad benefits for society, including enhancing the many ways that older citizens enrich our communities, write The University of Queensland Jane O'Sullivan and ADB's Dr Susann Roth
This is highly debatable.
China has rolled back its one-child policy and is now incentivizing population growth.
Singaporeans are not replacing themselves at the desired rate, and hence they have to import foreigners into their markets to fill in positions.
Canada, Australia and Newzealand invite immigrants to fill in their countries because they have low population density figures compared to other countries having a large landmass.
Read 7 tweets
16 Sep
Had an interesting encounter with a management consulting firm which wants to set up an ERM Desk for one of its client in the E&P Sector
So I enquired about the client expectations?
Con: Client wants a friendly Risk Dept.
Me: What's friendly?
Con: No authorizations or approvals
Well, that is the general problem across different industries.
Even in the financial sector, remember meeting a client that wanted me to design the JD of a #CRO who would report to the #CFO.
Another, e.g. where the Risk Manager was made subordinate to the Chief Investment Officer
Furthermore, they want GRC/ERM or any other Control Staff to be highly understanding of the business process, and remain courteous even if risks are being materialized and losses are mounting
Never work as a Risk Professional where the notion of making a Profit at all costs exist
Read 7 tweets
27 Aug
There is a vested commercial interest in increasing #complexity around everything.
Some scholars and intellectual propagandists would like to make things appear overly complicated because that is how they can make money.
#Complexity problem can be broken down by asking relevant straightforward questions and providing equally relevant simple-minded answers which address the root causes and understands the effects.
Read 14 tweets
26 Aug
Many students doing basic mathematics cannot distinguish between #iteration, #simulation, and #emulation as different methods of experiment design.
Even further surprised why so many students don't know the similarity and the difference between computation and calculation.
These are some of the basic mistakes which one, embedded into the mind, will work their way right into a workplace and destroy our educational foundations
For, e.g. when I was teaching Introduction to FRM Financial Risk Management, I noticed many students thought they are three different types of VaR - Value at Risk.
What they didn't realize is that VaR can be computed using different models aka methodologies, namely, HS, VCV, MCS.
Read 10 tweets
25 Aug
Did the #Irish Central Bank provide sovereign guarantees to buyers of Irish Bank Bonds and other contractual debt liabilities classified as fixed income securities, before the #GFC struck?
I asked this question after watching Professor Kelly on YouTube.
He was describing how the #Irish Central Bank allowed banks to import capital in large sums, and later lend it out to housing finance borrowers.
That created a severe #ALM Mismatch, as homes are not liquid assets.
Only after the #GFC, did the Irish and other banks realize that a run on the #deposits could lead to financial #insolvency.
#Ruin #Risk by definition is the gap between Unexpected #Loss and Expected Loss.
As the gap increases, the chances of financial ruin and #default rises too!
Read 7 tweets
25 Aug
How do you prepare for an investor relations interview at a large asset management company managing multiple funds?
Speak with confidence, dress well and above all use an impressive array of financial jargon and cutting edge terms, as many as you can, to make the employer feel comfortable.
In modern times, you should also be familiar with some data science concepts.
E.g. how data visualization tools can help the customer extract value from the research reports.
Read 8 tweets
25 Aug
What should I know about risk management for a job interview with an asset management and securities brokerage firm?
@IOSCOWIW @efc_global @MarketIntegrity @GARP_Risk
You need to know everything about Capital Markets at least.

Investment Banking and Asset Management Sector /brokerage require an exceptional understanding of debt and equity market instruments and asset classes.
Sound knowledge of derivative markets will add to your CV.
Read 15 tweets
24 Aug
Most of the #MBA Finance students who attended my masterclass in Investments and Portfolio Management did not know how to use the #VLOOKUP or #VLOOKDOWN XLS Functions
Most of them completed graded courses in CS.
And then students complain about the standard of business education?
Not only that!
Most of the MBAs specializing in Finance that apply for Industrial Placement Programs or internships, struggle to read and understand financial statements.
Does that surprise you?
Not me!
Because Finance Majors are not necessarily good at using #Accounting or #IFRS
I am dead against an MBA Finance Degree.
its neither fish nor fowl
You cannot become a Financial Planner only by reading business case studies or solving a few exercises or writing project reports using standard formats
Better opt for an MS or MSc in Finance with a focus on Maths
Read 10 tweets
24 Aug
Does a PhD degree in mathematics or statistics give me an edge over someone with just a bachelor's degree in economics if I want to work in a hedge fund or an investment bank (especially in the current changing field)?
PhD degree can be helpful if you are interested in working as a Quantitative Risk/ Trading Analyst.
I personally feel that Economics and Finance have been hijacked by Physicists, Mathematicians and Statisticians.
There’s too much #Charlatanism in the subject.
Economics is the envy of Physics these days.
Read 9 tweets
24 Aug
What are recent topics for PhD in management or other affiliated subjects?

The latest topics of interest are =>
1.#Behavioural models of #Marketing using experimental economics

2.Role of #Data #Sciences in modelling time-motion studies to measure human efficiency and output on the shop floor.
3.#Reliability Management Process Improvement Controls used in the Value-Added Industries
(Industrial/#engineering management).
Read 7 tweets