Programmes

MSc Quantitative Methods for Risk Management

  • Graduate taught
  • Department of Statistics
  • Application code G4U2
  • Starting 2018

The MSc Quantitative Methods for Risk Management – formerly known as MSc Risk and Stochastics - offers in-depth instruction in probabilistic, statistical, and computational methods to quantify risk arising from, but not limited to, economic, financial, and insurance applications.

This programme is LSE’s timely response to industry’s strong demand in experts with quantitative expertise in risk management, finance, insurance, and their interface.  

This programme will instruct you in theoretical as well as practical aspects of various quantitative methods to measure and mitigate financial and insurance risk. It draws on diverse disciplines, from mathematical finance, actuarial science to statistics and computation. You will work with real financial data to receive hands-on training in real-world problems and case studies. This programme draws on world class research in modern financial and actuarial mathematics and statistics within the Department.

The programme aims to prepare you for a range of expert careers in financial and insurance industries, in regulatory bodies, and in applied and theoretical research. 

Programme details

Key facts

MSc Quantitative Methods for Risk Management 
Start date Mandatory pre-sessional course begins early September 2018
Application deadline None – rolling admissions. However please note the funding deadlines
Duration Ten months full-time, 22 months part-time (see Bologna process)
Applications 2016 146
Intake 2016 26
Availability UK/EU: Open 
Overseas: Open 
Tuition fee UK/EU: £26,976
Overseas: £27,504
Financial support Graduate support scheme (deadline 26 April 2018)
Minimum entry requirement 2:1 degree or equivalent in actuarial science, mathematics, statistics, or mathematical economics/finance
GRE/GMAT requirement None
English language requirements Standard (see 'assessing your application')
Location  Houghton Street, London

For more information about tuition fees and entry requirements, see the fees and funding and assessing your application sections.

Programme structure and courses

You will take a compulsory two-week pre-sessional course in Financial Mathematics before the start of the programme. You will then take courses to the value of four full units in total, made up of compulsory and optional courses. The five compulsory courses lay the foundations in advanced probabilistic models and statistics methods and give a broad introduction to theories of risk in insurance and finance. For the optional courses, you can choose from courses in statistics, mathematics and finance. You will choose options to the value of one and a half units in total.

(* denotes a half unit)

Stochastic Processes*
Provides a broad introduction to stochastic processes with an emphasis on financial and actuarial applications. 

Statistical Methods for Risk Management*
Introduces statistical methods to measure risk. All theoretical models are implemented in R and applied to real financial and insurance data. 

Computational Methods in Finance and Insurance*
Develops computational skills and introduces a range of numerical techniques of importance in actuarial and financial engineering. 

Stochastics for Derivatives Modelling*
Examines valuation and hedging of derivative securities.

Recent Developments in Finance and Insurance*
Covers recent developments in the theory of stochastic processes and applications in finance and insurance and their interface. Several topics are presented by industry practitioners.

Optional courses to the value of one and a half units

You can find the most up-to-date list of optional courses in the Programme Regulations section of the current School Calendar.

You must note however that while care has been taken to ensure that this information is up to date and correct, a change of circumstances since publication may cause the School to change, suspend or withdraw a course or programme of study, or change the fees that apply to it. The School will always notify the affected parties as early as practicably possible and propose any viable and relevant alternative options. Note that that the School will neither be liable for information that after publication becomes inaccurate or irrelevant, nor for changing, suspending or withdrawing a course or programme of study due to events outside of its control, which includes but is not limited to a lack of demand for a course or programme of study, industrial action, fire, flood or other environmental or physical damage to premises.

You must also note that places are limited on some courses and/or subject to specific entry requirements. The School cannot therefore guarantee you a place. Please note that changes to programmes and courses can sometimes occur after you have accepted your offer of a place. These changes are normally made in light of developments in the discipline or path-breaking research, or on the basis of student feedback. Changes can take the form of altered course content, teaching formats or assessment modes. Any such changes are intended to enhance the student learning experience. You should visit the School’s Calendar, or contact the relevant academic department, for information on the availability and/or content of courses and programmes of study. Certain substantive changes will be listed on the updated graduate course and programme information page.

Teaching and assessment

Contact hours and independent study

Within your programme you will take a number of courses, often including half unit courses and full unit courses. In half unit courses, on average, you can expect 20-30 contact hours in total and for full unit courses, on average, you can expect 40-60 contact hours in total. This includes sessions such as lectures, classes, seminars or computer workshops. Hours vary according to courses and you can view indicative details in the Calendar  within the Teaching section of each course guide.

You are also expected to complete independent study outside of class time. This varies depending on the course, but requires you to manage the majority of your study time yourself, by engaging in activities such as reading, note-taking, thinking and research.

Teaching methods

LSE is internationally recognised for its teaching and research and therefore employs a rich variety of teaching staff with a range of experience and status. Courses may be taught by individual members of faculty, such as lecturers, senior lecturers, readers, associate professors and professors. Many departments now also employ guest teachers and visiting members of staff, LSE teaching fellows and graduate teaching assistants who are usually doctoral research students and in the majority of cases, teach on undergraduate courses only. You can view indicative details for the teacher responsible for each course in the relevant course guide.

Assessment

All taught courses are required to include formative coursework which is unassessed. It is designed to help prepare you for summative assessment which counts towards the course mark and to the degree award. LSE uses a range of formative assessment, such as essays, problem sets, case studies, reports, quizzes, mock exams and many others. 

Summative assessment may be conducted during the course or by final examination at the end of the course. Most courses are assessed by a two-hour exam in the summer term although please note that for ST429 Statistical Methods for Risk Management and ST435 Advanced Probability Theory, exams take place in Lent Term Week 0. Some courses contain an element of course work, such as project and presentation.

An indication of the formative coursework and summative assessment for each course can be found in the relevant course guide.

Academic support

You will also be assigned an academic adviser who will be available for guidance and advice on academic or personal concerns.

There are many opportunities to extend your learning outside the classroom and complement your academic studies at LSE. LSE LIFE is the School’s centre for academic, personal and professional development. Some of the services on offer include: guidance and hands-on practice of the key skills you will need to do well at LSE: effective reading, academic writing and critical thinking; workshops related to how to adapt to new or difficult situations, including development of skills for leadership, study/work/life balance and preparing for the world of work; and advice and practice on working in study groups and on cross-cultural communication and teamwork.

LSE is committed to enabling all students to achieve their full potential and the School’s Disability and Wellbeing Service provides a free, confidential service to all LSE students and is a first point of contact for all disabled students.

Preliminary reading

S Shreve Stochastic Calculus for Finance I: the binomial asset pricing model (Springer, 2004)

J C Hull Risk Management and Financial Institutions (Wiley, 2012)

Careers

The programme offers excellent prospects for employment and further study. You can gain employment in the finance or insurance industries, or go on to do a higher degree. Our alumni have taken up positions in banks, asset management firms, insurance and reinsurance companies, data analytics companies, consulting firms, and world-wide research institutions. 

Students who graduate from this programme are eligible to apply for exemption from the Institute of Actuaries subject 'ST0' on successful completion of the Computational Methods in Finance and Insurance project.

Support for your career

Many leading organisations give careers presentations at the School during the year, and LSE Careers has a wide range of resources available to assist students in their job search. Find out more about the support available to students through LSE Careers.

Assessing your application

We welcome applications from all suitably qualified prospective students and want to recruit students with the very best academic merit, potential and motivation, irrespective of their background.

We carefully consider each application on an individual basis, taking into account all the information presented on your application form, including your:

- academic achievement (including predicted and achieved grades)
- personal statement
- two academic references
- CV

See further information on supporting documents

You may also have to provide evidence of your English proficiency, although you do not need to provide this at the time of your application to LSE. See our English language requirements.

When to apply

Applications for this programme are considered on a rolling basis, meaning the programme will close once it becomes full. There is no fixed deadline by which you need to apply, however to be considered for any LSE funding opportunity, you must have submitted your application and all supporting documents by the funding deadline. See the fees and funding section for more details.

Minimum entry requirements for MSc Quantitative Methods for Risk Management

Upper second class honours (2:1) degree or equivalent in actuarial science, mathematics, statistics, or mathematical economics/finance. 

Competition for places at the School is high. This means that even if you meet the minimum entry requirement, this does not guarantee you an offer of admission.

See international entry requirements

Personal statement requirements

Your personal statement should state why you want to do the programme applied for and why you have chosen LSE. Brief details of your academic background and aspirations are also useful. If your background is outside of mathematics or statistics then you should provide further explanation of how your experience is relevant to the programme applied for; as well as further details of your current studies.

Your personal statement should be concise and should not exceed 500 words.

If you are applying for more than one choice in the Department of Statistics, it is recommended that you submit two separate personal statements. If the two programmes for which you are applying are very similar and you would prefer to combine the information in one statement then you may do so; however, please ensure that your statement clearly addresses your motivations for applying for each separate programme.

As well as the required documents listed above, you should also provide course descriptions and reading lists for advanced courses in mathematics and statistics in your degree (either held or pending). 

Fees and funding

Every graduate student is charged a fee for their programme.

The fee covers registration and examination fees payable to the School, lectures, classes and individual supervision, lectures given at other colleges under intercollegiate arrangements and, under current arrangements, membership of the Students' Union. It does not cover living costs or travel or fieldwork.

Tuition fees 2018/19 for MSc Quantitative Methods for Risk Management

UK/EU students: £26,976
Overseas students £27,504

Fee status

The amount of tuition fees you will need to pay, and any financial support you are eligible for, will depend on whether you are classified as a home (UK/EU) or overseas student, otherwise known as your fee status. LSE assesses your fee status based on guidelines provided by the Department of Education.

Further information

Fees and funding opportunities

Fee reduction

Students who completed undergraduate study at LSE and are beginning taught graduate study at the School are eligible for a fee reduction of around 10 per cent of the fee.

Please refer to the Fees Office website for further information.

Scholarships and other funding

The School recognises that the cost of living in London may be higher than in your home town or country, and we provide over £11.5 million in scholarships each year to gradaute students from the UK, EU and overseas.

This programme is eligible for needs-based awards from LSE, including the Graduate Support SchemeMaster's Awards, and Anniversary Scholarships

Selection for any funding opportunity is based on receipt of an application for a place – including all ancillary documents, before the funding deadline. 

Funding deadline for needs-based awards from LSE: 26 April 2018.

In addition to our needs-based awards, LSE also makes available scholarships for students from specific regions of the world and awards for students studying specific subject areas.

Check the latest information about scholarship opportunities

Government tuition fee loans and external funding

A postgraduate loan is available from the UK government for eligible students studying for a first master’s programme, to help with fees and living costs. Some other governments and organisations also offer tuition fee loan schemes.

Find out more about tuition fee loans
Find out more about external funding opportunities

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