Towards the end of each year, the Economist magazine comes out with an annual publication with predictions for the next year. This year’s issue of ‘The World in 2013’ carries an article by Nassim Nicholas Taleb with some profound and rather interesting suggestions.
Every now and then I get an email from someone who would say they are interested in writing the PRMIA exams, but find the math too difficult. “I am not a math guy”. “I have no math background. I studied business.”
A brief message to all PRM candidates: focus on the learning, and enjoy it. Don’t worry too much about the exam.
Here is an interesting extract from Lloyd Blankfein’s testimony to the Financial Crisis Inquiry Commission on Goldman’s risk management practices. I would not want to add much by way of editorial comment here, except that Lloyd Blankfein gets to the heart of risk management – which isn’t about fancy math or regulation alone.
A question that arises in the mind of any PRM holder or candidate is how having the designation affects his (or her) job prospects. Can it help find a better job, get a promotion, a payrise, or for someone not working in the risk field, can it help them gain an entry into the profession? Well, like everything, it depends.
Futures and spot prices move in lockstep, but the moves are not identical. This is because the delta of a futures contract is not equal to 1. If it were, the futures contract would be an exact replacement for the spot security, but it is not so.