Personal Statement: Taking a Risk

Personal Statement: Taking a risk to study risk management at the graduate level

The American economy of today seems to offer unprecedented risks for even the most daring financial professional. The decimation of many individual's pension funds through over-zealous investment, the immanent prospect of privatizing aspects of Social Security, and the uncertain economic future and weak dollar make it seem as though embarking upon the most calculated and controlled risks is a dicey prospect in any sphere of today's market. Technology has also contributed to speeding up the world economy's flux and flow and has upset some of the regularity of the American business cycle and pace of its financial markets. Yet without taking great risks, there is no great reward, and perhaps the greatest risk of all is simply to rest upon one's investment laurels, rather than to forge ahead into the future.

I have decided to take the calculated risk of leaving the workforce I love and embarking upon a one-year program to better hone my technical and quantitative skills in finance. I wish to re-enter these uncertain economic conditions, only after further solidifying my experience in a master-level program that focuses on the use of quantitative methods and information technology in the field of finance. Only by obtaining a more in-depth understanding of the mathematics, computational and statistical tools when dealing with financial data, can I truly become the financial professional necessary to navigate such treacherous economic waters. I hope to evolve into an individual who will take some of the risk out of risk management for his clients, yet still who can still deploy his quantitative portfolio management audacity to the investor's best advantage.

Over the past five years I have worked as a counter party credit analyst covering the investment fund industry. My work with hedge funds, mutual funds and pension plans has not only exposed me to the field of risk management, but has convinced me that the pace and temperament of this field uniquely suits my skills and aptitudes. As a part of my work, I have conducted on-going analysis and monitoring of the risks involved in a variety of investment funds. I remained at the cutting edge of market research, for I must be aware of the subtlest differences amongst different funds. This invaluable work experience has not only steeled my stomach to risk, but has shown me the importance of mathematics and programming in the financial field. Quantitative data, properly studied, remains the most invaluable tool in risk management today.

I have also already begun my initial creative work in the field. Recently, I developed my first quantitative model at work, an original program using Excel to generate risk ratings for different funds, based on statis data. Through my employment as well I have broadened my knowledge base about derivates in the capital markets products, through direct involvement in transactions as well as self-study conducted at in-house seminars and courses.