Risk Managers Answering More for Their Actions

August 10, 2009 (PLANSPONSOR.com) - A survey of quantitative finance and risk management professionals by 7city Learning showed an increased focus on risk management over the last 12 months in the wake of the financial crisis.

According to a press release, 61% of those working as quants or risk managers stated that they are being asked for more explanation than previously around validation or explanation of their techniques. More than half (55%) of respondents said they are being consulted more on risk management issues, with 35% of them saying they are being consulted much more often.

Almost all (95%) respondents indicated they feel risk management is the same, if not a greater, part of their job, and (36%) of respondents said risk management is a greater part of their job

The survey sample was comprised of a random selection of alumni from 7city’s Certificate in Quantitative Finance (CQF) course, primarily quantitative finance and risk management professionals from global financial institutions.  

According to the press release, Steve Young, a CQF alumni and portfolio manager, noted: “Since the beginning of the financial crisis last year, I’ve found that as a quant, risk management has become an even greater part of my day-to-day responsibility within my firm.  I think the survey results point toward the need for quantitative finance professionals to make sure they have an applicable understanding of risk management rather than a theoretical one.”