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Application for Registration of a New Program[1]


|Program title, award, |Program title: Financial Risk Management Award (e.g., B.A., M.S.): M.S. |

|credits, and proposed HEGIS|Credits: 30-37 credits |

|code | |

| |Proposed HEGIS code: 0504.00 Banking and Finances |

| | |

|Program Description and Purpose |

|Provide a brief description of the program as it will appear in the institution’s catalog. |

|Answer: The MS in Financial Risk Management prepares students to analyze and manage risk in financial and non-financial firms in the context of the current and |

|prospective regulatory environment. |

|List educational and (if appropriate) career objectives. |

|Answer: The MS in Financial Risk Management is targeted to students who do not have an academic business background, but are interested in entering the field of |

|financial risk management. The program is also suitable for students with an undergraduate or graduate background in business, but who wish, at this moment, to |

|focus on financial risk management. Students who have had some work experience in business but lack academic preparation in the field will find this program |

|useful preparation for a position as a financial risk analyst or manager. |

|How does the program relate to the institution’s mission and/or master plan? |

| Answer: The Lubin School of Business’s mission is “to provide its students with exceptional experience-based learning that blends business theory with practical|

|applications to prepare its graduates for successful professional careers in the global business environment.” Recently, the financial environment has been racked|

|by upheavals due to excessive risk-taking by corporations and individuals. As a result, the government has introduced legislation to ensure that this does not |

|recur. Businesses are very much in need of qualified individuals who understand this legislation, can respond to it appropriately and can manage risk in their |

|institutions. The MS in Financial Risk Management will prepare students to fulfill this role. |

|Describe the role of faculty in the program’s design. |

|Answer: The program was designed by a special committee, composed of faculty from the Department of Finance and Economics. Following its design, the program was|

|circulated to the department and comments received. Subsequently, it was reviewed and approved by faculty of the Lubin School of Business. The program builds |

|upon existing courses in the MS programs in Investment Management and Financial Management. |

|Describe the input by external partners, if any (e.g., employers and institutions offering further education). |

|Answer: Input from professionals in the area of risk management, including Pace alumni serving as high level managers and executives in the field, as well as |

|organizations such as GARP (Global Association of Risk Professionals) was sought, reviewed, and incorporated into the courses and program design. |

|What are the anticipated Year 1 through Year 5 enrollments? |

|Answer: With promotion of the program, it is anticipated that enrollments will begin with ~20 students and grow to 50-70 students in five years (e.g., Year1=20, |

|Year2=20, Year3=30, Year4=35, Year5=40) |

| |

|Sample Program Schedule |

Table 1b: Graduate Program Schedule

|Indicate academic calendar type: _X_Semester __Quarter __Trimester __ Other (describe) Courses will be offered during Summer 1 |

|Label each term in sequence, consistent with the institution’s academic calendar (e.g., Fall 1, Spring 1, Fall 2) |

|Use the table to show how a typical student may progress through the program; copy/expand the table as needed. |

|Term: FALL 1 | |Term: SPRING 1 |

|Course Number & Title |Cred|New |

| |its | |

|Course Number & Title |Credits |New |

|New: indicate if new course Prerequisite(s): list prerequisite(s) for the noted courses |

|MS in Financial Risk Management – Course Descriptions |

ECO 646: International Risk Analysis

Course Description: Focuses on the macroeconomic and microeconomic methods and techniques that are used by corporate managers and investment analysts for tracking global market trends, and for assessing the economic, financial and political risks involved in these markets. Utilizes economic data on global markets to analyze market trends and risks. Evaluates the investment, and hedging strategies available to corporate managers. Makes extensive use of material on the role played by the major international rating agencies, including Moodys and Standard and Poors, and international economic agencies, such as the IMF and World Bank.

FIN 632: Introduction to Financial Decision-Making [NEW]

Course Description: This course introduces the students to the essentials of financial decision making within the firm as well as the general characteristics of financial markets and securities. It is intended to provide the student with the background to understand the role of risk in the financial markets as well as the management of financial risk within the firm.

FIN 650: Applied Analytical Methods in Finance

Course Description: Introduces advanced methodological tools required to do research in finance and investment analysis. Topics include study of simple linear regression, multiple regression analysis, analysis of variance, discriminate analysis, factor analysis and non-parametric tests. Emphasizes modern portfolio theory. Use of computers is required.

FIN 653: Portfolio Analysis and Management

Course Description: Analyzes the theory and practice of modern investment management. Topics include quantitative concepts, portfolio analysis, capital asset pricing theory model, performance measurement, efficient market hypothesis, portfolio management process, use of derivative securities, ethical and legal considerations and professional standards.

FIN 654: Risk Management and Capital Markets

Course Description: Introduces modern quantitative methods to measure and manage financial risk. Focuses on teaching students to identify the business issues, regulatory requirements and techniques to measure and report risk across a major financial institution and to design or buy a risk management system. Covers market risk, credit risk and liquidity risk.

FIN 655: Financial Econometrics for Risk Modeling [NEW]

Course Description: This course teaches estimation and forecasting of time series models in finance. Students will learn how to measure and forecast financial volatility and correlations and become proficient with GARCH type models and historical volatilities. These methods will be used to measure risk and analyze alternative approaches to calculating Value at Risk, dynamic portfolio selection and risk control. The course also examines implied volatilities from options, variance swaps, credit risk models, market (in)efficiency, dynamic relationships between global financial markets and high frequency volatility. The course teaches estimation, Monte Carlo simulations and programming methods.

FIN 661: Corporate Financial Risk Management

Course Description: Introduces students to financial risk management (hedging) from the perspective of non-financial corporations. Students learn why firms should hedge risk, whether they do manage risk, and how to measure and manage risk. Designed for those who want to learn how to use derivatives to maximize firm value through risk management. Aims to provide the right tools and insights to manage various market risks in a corporate setting rather than focusing on pricing financial derivatives or financial engineering.

FIN 672: Strategies in Investments, Options, and Futures

Course Description: Covers investment strategies for individuals and institutions. Explores diversification strategies utilizing multi-industry portfolios, international equities, real estate and other assets. Considers tax strategies involving tax advantages investments and securities transactions. The student will receive practical experience in establishing portfolios that reflect the outlook for investments in relation to risk tolerances.

FIN 679: Fixed Income Markets and Analytics

Course Description: Analyses of U.S. and foreign fixed income markets. Describes the various products, where and how they are traded, how they are priced, and how they are used to achieve a variety of financial goals including capital formation, interest rate risk management, and portfolio diversification. Topics covered include treasury, agency, corporate, and municipal bonds, floating rate bonds, mortgage-backed securities, term structure modeling, immunization, credit risk management, credit derivatives, and interest rate derivatives including swaps, caps and floors, and swaptions.

FIN 686: Applied Financial Risk Management and Policy [NEW]

Course Description: This course integrates the theory of risk management with the practical problems of financial and nonfinancial risks faced by business firms and other organizations. Both quantitative techniques and qualitative methods utilized for risk management applications are addressed. The methodologies and tools used in identifying, measuring, managing and monitoring market risk, credit risk, operational risk, and liquidity risk are discussed. Difficulties related to risk budgeting, counterparty risks and to modeling risk aggregation are explored. The course makes extensive use of case studies.

MBA 640 - Accounting for Decision Making

Course Description: This course covers basic accounting theory and practice with special emphasis on the concepts of underlying income determination, preparation of the statement of financial position and managerial uses of accounting information. Topics include transaction analysis, revenue and expense recognition, accounting for merchandising, manufacturing and cost operations, capital budgeting and analysis of management’s use of accounting data in management planning and control. Consideration of international accounting issues are integrated throughout the course.

MBA 646 – Data Analysis for Decision Making

Course Description: Students are taught to apply statistical tools useful for making effective managerial decisions in a disorganized and uncertain environment. They will develop valuable data analysis skills and the ability to choose appropriate statistical methods and interpret them in realistic management cases. These tools include methods for collecting, organizing presenting and analyzing data utilizing Excel and commercial-level software add-ins. Topics include applying statistical methods and presenting results for making better decisions using descriptive statistics, probability theory-including important statistical distributions, estimation, hypothesis testing and simple and multiple regression analysis. The emphasis will be on applying these tools to improve decision making in all functional areas of business.


[1] CUNY and SUNY institutions: contact System Administration for program registration guidance.

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