Introduction to MSc Financial Risk Management
Businesses rely significantly on the smooth functioning of financial operations. When an entrepreneurial endeavour starts, the foundation is laid with an appropriate amount of capital, business stakeholders and a well-structured strategy. However, once a business is up and running, the focus shifts on cash flow, market performance and efficiency of strategies. The thing about finance is that, though it is the spine of a business, it also comes with a considerable amount of risk. Hence, it is essential that business owners are well-versed with financial risk management techniques to ensure the endeavour progresses in the direction of success. An MSc programme in Financial Risk Management equips students with the skills to tackle unprecedented risks in a business. This postgraduate programme is offered by the AMBA-accredited GISMA Business School, Berlin.
  • The MSc Financial Risk Management degree programme is delivered on-campus and spans over one year. The course is divided into two semesters along with a summer dissertation.

  • To get admitted into this postgraduate programme, students must fulfil the following criteria:

    • The applicants must have acquired a grade of 2:2 or more from a UK Bachelor’s degree;

    • The applicants must have passed an English proficiency test if they are non-native speakers. The accepted IELTS score for this programme is a minimum of 6.5, with at least 5.5 in each component;

    • Applicants who have not acquired a bachelor’s degree can also apply for the course if they have at least five years of relevant management experience.

  • Over the span of one year, students will study five modules in total, out of which four modules will be of 30 credits and the fifth module will be of 60 credits. The total credits that a student can earn during the course of the programme are 180 credits. The core modules that make up the programme structure of this financial risk management course are:

    • Fundamentals of Securities and Investments: This module focuses on helping students garner in-depth knowledge about the intricacies of securities and investments. Students will learn about the various aspects of securities and investments, including equities, bonds, derivatives, financial assets and markets, economic environment, taxation, investment wrappers and more. Furthermore, students will learn how these financial instruments influence the functioning and decision-making practices of an organisation.

    • Derivatives and Risk Hedging: Financial derivatives and risk hedging play an important role in cutting down the risks that an organisation might incur. In this module, students acquire knowledge about a broad range of derivative products and develop skills that allow them to use risk hedging to the advantage of an organisation. The primary focus of this module is on helping students gain a thorough understanding of the various hedging methods and how they can be used to manage risks pertaining to trades, business operations and investments.

    • Risk Simulation and Basel III Capital Requirements: Financial risk management is implemented to prevent an organisation from incurring losses as a result of financial decisions. Hence, it is essential that students who plan to enter the field are well aware of the guidelines and processes involved in it. This module trains students on how to simulate potential risk scenarios and create a premise to practise risk analysis and prediction. Understanding the concept of risk simulation can help students verify and assess risk models and their efficiency. Students who are about to enter the financial risk foray must also have in-depth knowledge about regulations that rule the sector. This module helps students become familiar with international banking regulations and their influence over the financial decision-making of an organisation.

    • Automation Regulations, Compliance: concepts and automation, FinTech and Regtech: One of the riskiest aspects of financial operations is the compliance issues that organisations face. In this module, students will attain a comprehensive understanding of the basic concepts of automation regulations, the financial technology industry and regulatory technology.

    • Research Methods, Professional Development and Dissertation/Project: In this module, students will put the theoretical knowledge acquired during the course into practice through a dissertation. It will help students understand how well they have understood the concepts of financial risk management and what their practical implications would be. Furthermore, students will develop research and professional skills that are critical for a financial risk management job role.

  • The tuition fees for this one-year master’s degree in financial risk management is €19,250. GISMA Business School offers a flexible payment plan to help reduce the burden on students. In this flexible payment plan, the payment is distributed over one deposit and three instalments. The details of the payment plan are given below:

    • Deposit: €2,000

    • 1st instalment: €5,750

    • 2nd instalment: €5,750

    • 3rd instalment: €5,750

Why opt for an MSc Financial Risk Management?

Financial risk management is a critical function for organisations across the globe, making the need for skilled professionals with relevant qualification imperative. Pursuing a financial risk management course can help students acquire skills that are pertinent to the global business standards of today. Furthermore, they can help organisations with crucial business decision-making and consequently driving the company towards profitable goals. 

Who should apply for an MSc Financial Risk Management?

Students who want to pursue a career in areas such as audit and treasury, risk management, compliance and work with a financial institution can opt for this programme in Berlin. Especially since it has come to the fore as the financial hub for Germany and is beaming with opportunities for financial risk management programme graduates.

Scope and future of MSc Financial Risk Management?

Since the volume of jobs within the financial sector is constantly increasing, the demand for finance professionals with expertise in risk management has also shot up. Many new job roles have been introduced to meet the pressing need for finance and technology’s amalgamation. Today, employers prefer finance professionals who have a sound technical knowledge and can handle finance operations related to data science and blockchain technology.

Career prospects after pursuing an MSc Financial Risk Management

  • Credit Risk Analyst: The job role of a credit risk analyst requires them to assess and review the financial history of an organisation or individual and determine whether they are eligible for a loan. They are responsible for identifying whether an individual or organisation is a credible customer. To excel at their job, credit risk analysts must have exceptional statistic and communication skills. Furthermore, they should be well-versed with Microsoft Office applications.

  •  Risk Manager: As a risk manager, you will be responsible for designing and communicating the risk policies of an organisation. They use their expertise to design risk models by factoring in market and credit risks. Additionally, they provide analytical support to help organisations comprehend possible risks and counter the unprecedented risks. Risk managers must have an in-depth understanding of the business, strong analytical skills and must implement a problem-solving approach. Furthermore, they should have an affinity for strategic planning and the ability to perform under pressure.

  • Market Risk Analyst: A market risk analyst is responsible for determining whether an organisation will incur a loss or profit from a particular investment and what the probability of it happening is. Among the various tasks that come with their job, some are risk management system development and consulting with securities traders to determine the risk factor in a particular investment. Risk analysts must be good at quantitative research and data analysis. Also, they should have detailed knowledge about the product and must possess negotiation skills.

  • Operational Risk Manager: The job role of an operational risk manager requires them to take on responsibilities such as developing operational risk policies and standards, identifying risk, assessing business units, implement strategic plans to prevent and alleviate operational risks and developing the key risk and control indicators. To excel at their job, operational risk managers must have a strong financial acumen, a keen eye for details and good presentation skills. In addition, they should be good at communicating, must have excellent industry and market knowledge and strong persuasion skills.

If any of the above-mentioned job roles are what you are aiming for, you can opt to study abroad in Germany and pursue a financial risk management course.