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 insurance and finance. The course, launched in 2004, builds on the successful BSc in Actuarial Science within the Department of Statistics at the London School of Economics and Political Science. It is well supported by the School in terms of staff and administration and has been allocated the highest priority by the Department. It draws on world-class research in modern actuarial and financial mathematics within the Department. The programme is LSE's timely response to the strong developments in the interface of insurance and finance, which is manifest in mergers across the industries, in countless novel products, and in the strong impact of modern financial mathematics on insurance mathematics.
The normal entry requirement is a good BSc degree (first class honours but upper second class honours will be considered in exceptional circumstances) in actuarial science, statistics, mathematical economics or mathematics. 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.
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:
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.
MSc Risk and Stochastics
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 here
For advice on your application please refer to the Frequently Asked Questions section of the Graduate Admissions website.