Risk is present in virtually every aspect of human activity and affects the individual and family, the small enterprise, the corporation, the public sector and government. Stochastics, which covers the mathematical theories of probability, statistics and decision-making under uncertainty, is the core discipline for the measurement and management of risk.
The MSc in Risk and Stochastics, conducted by internationally renowned experts, offers in-depth instruction in advanced mathematical risk theory and its ramifications in finance and insurance. It draws on world-class research in modern financial and actuarial mathematics within the Department. The programme is LSE’s timely response to the strong developments in the interface of finance and insurance, which is manifest in mergers across the industries, in countless novel products, and in the strong impact of modern financial mathematics on insurance mathematics.
Students registering for the MSc in Risk and Stochastics can expect high-level instruction in probabilistic methods with applications in the management of financial and insurance risk and the interplay between finance and insurance sectors.
The MSc in Risk and Stochastics provides instruction in theoretical as well as practical aspects of various techniques in risk management. It draws on diverse quantitative disciplines from mathematical finance and actuarial science to statistics. Students work with real financial data to receive hands-on training in real-world problems. The programme aims to prepare candidates for a range of expert careers in financial and insurance industries, in regulatory bodies, and in applied and theoretical research.
Dr Hao Xing
MSc Risk and Stochastics Programme Director
Entry requirements
The normal entry requirement is a 2:1 degree or equivalent in actuarial science, mathematics, statistics, or mathematical economics/finance. It should include training in analysis and linear algebra, with rigorous proofs, and probability theory at the level of our third year undergraduate course ST302, a description of which can be found online in the LSE Calendar.
Details of how to apply
For further practical details of how to submit an application, including the word limit on your personal statement, please see our MSc FAQs (Frequently Asked Questions
To submit your application please visit our Graduate Admissions website here.
Course structure
Our taught postgraduate courses are based around lectures, with problem classes and computer workshops. Most courses are assessed by a two-hour exam in the summer term although some contain an element of course work.
Students must take courses to the value of four full units. The courses in the programme are divided into two categories: compulsory courses and options.
Students must take the following five compulsory courses:
Plus three chosen from these two sets of option courses:
At least one of the following half-unit options:
Note: *ST441 is not available in the 2016/17 academic session.
Up to two of the following half-unit options:
Note: **Students taking FM442 can apply for a place on FM457 MATLAB for MSc students, a non-assessed computer course.
Programme Regulations
MSc Risk and Stochastics
Exemptions
Students who graduate from the MSc Risk and Stochastics degree programme are eligible to apply for exemption from the Institute of Actuaries subject 'ST0' on successful completion of the ST433 project.
Further details are available here. The application form can be accessed via this link.
Further information
For advice on your application please refer to the Frequently Asked Questions section of the Graduate Admissions website.