Risk Management and Financial Engineering
Risk and reward
Since the financial crisis of 2007-2009, there has been a high demand for professionals who have both quantitative skills and an understanding of the risk management environment in which decisions are made. The Risk Management and Financial Engineering major provides you access to a wealth of career opportunities in this exciting field.
Regulators are requiring banks to use increasingly complex models to evaluate market risk, credit risk and operational risk. The major will allow you to understand these models and contribute to a bank's strategy for minimizing its regulatory capital requirements. It will also give you the tools to join groups concerned with structuring complex products that meet the needs of particular clients.
You will learn about risk management from:
- The perspective of a corporate treasurer who is interested in hedging his or her exposure to interest rates, exchange rates and commodity prices
- The perspective of a fund manager who wants to change the nature of his or her exposure to financial markets
- The perspective of a financial institution that trades derivatives and is faced with an increasingly complex regulatory environment.
You will also learn how to price a wide range of derivatives instruments.
"Stocks that enjoy big unexplained jumps in value do considerably worse in the long term."
- Hai Lu, an associate professor of accounting at Rotman, in an online article
Requirements to Complete the Major
You must successfully complete three of the following core courses:
- Options and Futures Markets
- Advanced Derivatives
- Financial Risk Management
It is also recommended that students in this major choose other courses from the following selection:
- Security Analysis & Portfolio Management
- Risk Modelling & Financial Trading Strategies
- Financial Institutions and Capital Markets
- Analysis & Management of Fixed Income Securities
- How Banks Work: Management in a New Regulatory Age
The major will train you for career opportunities in risk management and the sales and trading of specific derivatives products. Because derivatives are increasingly central to the financial markets as a whole, there is a high demand for graduates with a sophisticated understanding of financial theory, and strong quantitative and analytical skills. Less quantitative roles include regulation, market, credit or operational risk management, portfolio management, and enterprise-wide risk management.
Typical Roles in risk management and trading include:
- Analyst, Capital Markets Risk Management
- Content Development Specialist
- Quantitative Risk Manager
- Credit Risk Analyst
- Financial Engineer
- Research Associate
- Regulatory Operations Analyst
- Corporate Investment Bank Advisor
Flexible Internship Program
The Rotman Full-Time MBA Program provides a unique opportunity for students to integrate and apply management knowledge gained within the program through a 4-month internship. Students are required to complete the course “Applied Management: Placement” in conjunction with a work placement which may be done in the Summer, Fall or Winter terms. Depending on their academic area of concentration/major and career objectives, students will be guided on the best work term option to secure a placement with an employer. Throughout their work placement, students will benefit from enhanced communication with their host employers, tracking of project deliverables and feedback from faculty supervisors.