Postgraduate Course

MSc Financial Engineering and Risk Management

MSc Financial Engineering and Risk Management

Overview

The details
Financial Engineering and Risk Management
October 2022
Full-time
1 year
Colchester Campus

Is it possible to prevent another financial crisis? The global finance sector requires financial engineers and risk managers to work alongside its traders in order to develop robust security measures to maximise financial stability.

The after-effects of the 2008 financial meltdown are still being felt across the globe. MSc Financial Engineering and Risk Management aims to develop finance sector workers who are able to evaluate risk, act rationally and understand the economic impact of their actions in order to find solutions. While the trader is trying to make money, the risk manager is trying not to lose it and the financial engineer is building the tools to reduce associated risks.

If you feel comfortable in pressurised environments and can rise to the challenge of making ethical and robust financial decisions, this could be the finance specialism for you.

MSc Financial Engineering and Risk Management will enable you to follow advanced, contemporary study in financial engineering and risk management and develop a deeper understanding of the risks within modern financial securities. You will also become skilled in the design of powerful management systems to measure risk. Upon graduation, you should possess the skills and knowledge for a successful career in commercial, investment and central banks, hedge funds, regulatory authorities and rating agencies.

You will master areas including:

  • asset pricing
  • derivative securities
  • financial modelling
  • mathematical research techniques using Matlab
  • machine learning
  • automation

MSc Financial Engineering and Risk Management is taught at Essex Business School, at our Colchester Campus. Our students and staff join us from all over the world and our teaching is grounded in contemporary issues and professional practice, supported by industry-standard facilities, such as our Bloomberg virtual trading floor.

Essex Business School offers a limited number of scholarships for the CFA level one exam to exceptional Masters students.

Why we're great.
  • We work with City traders to present you with real-life risk situations in order for you to hone your skills and put your theories into practice
  • We are one of the largest and most respected finance departments in the UK
  • Benefit from round the clock access to our Bloomberg Financial Data Trading Floor and use XTrader and Matlab software to help you test your risk management theories
THE Awards 2018 - Winner University of the Year

Our expert staff

By joining MSc Financial Engineering and Risk Management you join one of the UK’s largest finance groups, with a team of experts in an enormous range of specialisms. You will be exposed to disciplines including: data analytics, global trading, risk management, investment banking, financial management, and more. Even if these are not part of your core programme, you will benefit from the diversity of interests which reflect the breadth of contemporary banking and finance issues facing organisations today.

Our lecturers have presented their work at the likes of the Bank of England, the European Central Bank and the Federal Reserve and are recognised for being at the forefront of research in:

  • business ethics and corporate social responsibility
  • financial data analytics
  • corporate social responsibility
  • organisation studies
  • leadership and strategy
  • finance and banking
  • risk management
  • international management

Professor Neil Kellard, Dean of Essex Business School and member of the Finance Group, carries out research which supports developing countries through forecasting commodity prices. By modelling the effects of different causes, such as natural disasters, his research helps to find solutions to ease the impact of price changes for commodities such as energy and food.

We have specialists from across the discipline who draw upon a range of social science theories and concepts to ensure this course reflects the breadth of contemporary issues in banking and finance affecting today’s organisations.

Not only are you taught by experts with both academic and industry experience, input from City-based industry leaders gives this course a thorough grounding in contemporary financial practice. Our school is also home to Essex Finance Centre.

Specialist facilities

Our zero-carbon building reflects our sustainable approach to business.

Located on our Colchester Campus and part of the Knowledge Gateway, our Essex Business School building features a unique winter garden, which gives the building its own micro-climate. The Eden-style dome provides an innovative working environment, which includes:

  • a virtual trading floor with Bloomberg Terminals offering direct use of Bloomberg data, information and analytics
  • access to X_TRADER, industry-leading software for trading multiple markets from a single screen
  • light and spacious lecture theatres with ‘listen again’ recording to aid your study
  • study pods and innovation booths for group working
  • Bonds café, to enjoy on-site fresh food and drink

Your future

Essex Business School is helping to create the business leaders of the future, those who are creative, innovative and ethically aware. 93% of our Essex Business School students are in employment or further study (Graduate Outcomes 2020).

Many of our graduates enjoy careers in financial analysis, management, public administration and accountancy at some of the world’s most well-known organisations and exciting SMEs, including:

  • Groupon, a global e-commerce marketplace
  • KPMG Group, a multinational professional services network
  • Right Freight Pvt Ltc, an Independent freight forwarder
  • Copal Partners, a financial consultation agency
  • Capital Markets Intelligence, a financial publisher
  • Credit Data Research, a business funder

Many now also run their own growing businesses, including international business incubator 0100Ventures and entrepreneurship website SlovakSTARTUP.

MSc Financial Engineering and Risk Management students can also take advantage of the services offered by the Student Development Team, including: careers advice; work experience; internships; placements; and voluntary opportunities.

Read Ludovico's story, and see how he benefited from his Masters degree.

My current experience of working for a hedge fund company has served to help make my ambitions clearer. I like my work and I like the hedge fund sector. In the future, I see myself doing a job which will be more related to the market analysis side. A job that also allows me to fully put into practice the knowledge and skills I gained during my Masters.

I can honestly state that my MSc in Financial Engineering and Risk Management at the University of Essex gave me all the knowledge and tools I needed, and that I still need to face the quite complex word of the hedge funds.

Ludovico Luce, MSc Financial Engineering and Risk Management, 2019

Entry requirements

UK entry requirements

A 2:2 degree, or international equivalent, in a numerate discipline such as: Economics, Finance, Mathematics, Statistics, Science or Engineering.

Your Degree should contain at least one module relating to Economics or Finance for example: Mathematics (calculus), quantitative finance/methods or Econometrics (probability, statistics). With a score of 50% in this module.

International & EU entry requirements

We accept a wide range of qualifications from applicants studying in the EU and other countries. Get in touch with any questions you may have about the qualifications we accept. Remember to tell us about the qualifications you have already completed or are currently taking.

Sorry, the entry requirements for the country that you have selected are not available here. Please select your country page where you'll find this information.

English language requirements

If English is not your first language, we require IELTS 6.5 overall with a minimum component score of 5.5

Additional Notes

The University uses academic selection criteria to determine an applicant’s ability to successfully complete a course at the University of Essex. Where appropriate, we may ask for specific information relating to previous modules studied or work experience.

Structure

Course structure

We offer a flexible course structure with a mixture of core/compulsory modules, and optional modules chosen from lists.

Our research-led teaching is continually evolving to address the latest challenges and breakthroughs in the field. The course content is therefore reviewed on an annual basis to ensure our courses remain up-to-date so modules listed are subject to change.

Teaching and learning disclaimer

Following the impact of the pandemic, we made changes to our teaching and assessment to ensure our current students could continue with their studies uninterrupted and safely. These changes included courses being taught through blended delivery, normally including some face-to-face teaching, online provision, or a combination of both across the year.

The teaching and assessment methods listed show what is currently approved for 2022 entry; changes may be necessary if, by the beginning of this course, we need to adapt the way we’re delivering them due to the external environment, and to allow you to continue to receive the best education possible safely and seamlessly.

Components and modules explained

Components

Components are the blocks of study that make up your course. A component may have a set module which you must study, or a number of modules from which you can choose.

Each component has a status and carries a certain number of credits towards your qualification.

Status What this means
Core
You must take the set module for this component and you must pass. No failure can be permitted.
Core with Options
You can choose which module to study from the available options for this component but you must pass. No failure can be permitted.
Compulsory
You must take the set module for this component. There may be limited opportunities to continue on the course/be eligible for the qualification if you fail.
Compulsory with Options
You can choose which module to study from the available options for this component. There may be limited opportunities to continue on the course/be eligible for the qualification if you fail.
Optional
You can choose which module to study from the available options for this component. There may be limited opportunities to continue on the course/be eligible for the qualification if you fail.

The modules that are available for you to choose for each component will depend on several factors, including which modules you have chosen for other components, which modules you have completed in previous years of your course, and which term the module is taught in.

Modules

Modules are the individual units of study for your course. Each module has its own set of learning outcomes and assessment criteria and also carries a certain number of credits.

In most cases you will study one module per component, but in some cases you may need to study more than one module. For example, a 30-credit component may comprise of either one 30-credit module, or two 15-credit modules, depending on the options available.

Modules may be taught at different times of the year and by a different department or school to the one your course is primarily based in. You can find this information from the module code. For example, the module code HR100-4-FY means:

HR 100  4  FY

The department or school the module will be taught by.

In this example, the module would be taught by the Department of History.

The module number. 

The UK academic level of the module.

A standard undergraduate course will comprise of level 4, 5 and 6 modules - increasing as you progress through the course.

A standard postgraduate taught course will comprise of level 7 modules.

A postgraduate research degree is a level 8 qualification.

The term the module will be taught in.

  • AU: Autumn term
  • SP: Spring term
  • SU: Summer term
  • FY: Full year 
  • AP: Autumn and Spring terms
  • PS: Spring and Summer terms
  • AS: Autumn and Summer terms

COMPONENT 01: CORE

MSc Finance and Investment: Dissertation
(40 CREDITS)

Your dissertation is the culmination of your Masters programme, where you apply the knowledge gained on your course to produce a 10,000 word independent piece of work. You generate an original idea, analyse literature and current knowledge and produce a coherent argument that shows your ability to relate theory to practice. Your dissertation will help you develop vital skills for the workplace, as well as the ability to analyse real problems through an academic lens. You're assigned a supervisor for the duration of your project.

View MSc Finance and Investment: Dissertation on our Module Directory

COMPONENT 02: CORE

Research Methods in Finance: Empirical Methods in Finance
(20 CREDITS)

This module equips you with the econometric tools and necessary experience to conduct empirical research in finance. You review statistical and basic econometric models and learn to apply econometric techniques in finance by considering topics such as (G)ARCH models, unit roots and cointegration.

View Research Methods in Finance: Empirical Methods in Finance on our Module Directory

COMPONENT 03: COMPULSORY

Derivative Securities
(20 CREDITS)

Master the pricing of financial derivatives and their use for hedging financial risks. You study the basics of futures and options, analyse the Black-Scholes and binomial option pricing models, and consider various numerical techniques for pricing financial derivatives. Futures and options are then utilised in the context of hedging financial risks, and you are introduced to the concept of volatility trading and the treatment of volatility as an asset class.

View Derivative Securities on our Module Directory

COMPONENT 04: COMPULSORY

Asset Pricing
(20 CREDITS)

Gain a formal introduction to asset pricing theories and empirical findings. You review the fundamental theories of the expected utility, asset pricing kernels, and risk-neutral valuation, covering the Capital Asset Pricing Model (CAPM), and linear factor models arising from the Arbitrage Pricing Theory (APT). You also discuss empirical asset pricing studies.

View Asset Pricing on our Module Directory

COMPONENT 05: COMPULSORY

Financial Modelling
(20 CREDITS)

Consider the use of modern econometric techniques in the analysis of financial time series. You cover multivariate models for stationary and non-stationary processes, such as Vector Autoregressive models, consider appropriate models for volatility, and study Markov processes and simulation methods used for financial modelling.

View Financial Modelling on our Module Directory

COMPONENT 06: CORE

Risk Management
(20 CREDITS)

The recent financial crisis and credit crunch have demonstrated that risk management was too narrowly defined. In this course you examine the Value at Risk (VAR) measure of financial risk developed in the 1990s, before discussing the new post-crisis Regulatory environment.

View Risk Management on our Module Directory

COMPONENT 07: OPTIONAL

EBS (Colchester Campus) options from list
(20 CREDITS)

COMPONENT 08: COMPULSORY

Finance Research Techniques Using Matlab
(20 CREDITS)

This module introduces Matlab, software commonly used in financial organisations and academia to model portfolio construction and solve banking and finance challenges. You learn how to use Matlab programming language to solve financial problems. These may include finding optimal portfolio weights, calculating and simulating derivative prices and implied volatilities, and estimating and simulating GARCH models, amongst others.

View Finance Research Techniques Using Matlab on our Module Directory

COMPONENT 09: COMPULSORY

Postgraduate Mathematics Preparation
(0 CREDITS)

This module covers topics in mathematics that are required in Masters-level finance courses at the University of Essex. You focus on the basics of linear algebra, differential calculus including optimisation and dynamics.

View Postgraduate Mathematics Preparation on our Module Directory

Teaching

  • Tailor the content of your course to more closely fit your interests and aspirations
  • Courses focus on practical applications and links with industry
  • We run an open seminar series

Assessment

  • Regular assessment is by coursework, presentations, case studies, group work, tests and examinations

Dissertation

  • You submit a 10,000 word dissertation

Fees and funding

Home/UK fee

£13,030

International fee

£20,350

Fees will increase for each academic year of study.

What's next

Open Days

We hold Open Days for all our applicants throughout the year. Our Colchester Campus events are a great way to find out more about studying at Essex, and give you the chance to:

  • tour our campus and accommodation
  • find out answers to your questions about our courses, student finance, graduate employability, student support and more
  • meet our students and staff

If the dates of our organised events aren’t suitable for you, feel free to get in touch by emailing tours@essex.ac.uk and we’ll arrange an individual campus tour for you.

2021 Open Days (Colchester Campus)

  • Saturday, November 13, 2021

Applying

You can apply for this postgraduate course online. Before you apply, please check our information about necessary documents that we’ll ask you to provide as part of your application.

We aim to respond to applications within two weeks. If we are able to offer you a place, you will be contacted via email.

For information on our deadline to apply for this course, please see our ‘how to apply’ information.

Colchester Campus

Visit Colchester Campus

Home to 15,000 students from more than 130 countries, our Colchester Campus is the largest of our three sites, making us one of the most internationally diverse campuses on the planet - we like to think of ourselves as the world in one place.

The Campus is set within 200 acres of beautiful parkland, located two miles from the historic town centre of Colchester – England's oldest recorded town. Our Colchester Campus is also easily reached from London and Stansted Airport in under one hour.

 

Virtual tours

If you live too far away to come to Essex (or have a busy lifestyle), no problem. Our 360 degree virtual tour allows you to explore the Colchester Campus from the comfort of your home. Check out our accommodation options, facilities and social spaces.

Exhibitions

Our staff travel the world to speak to people about the courses on offer at Essex. Take a look at our list of exhibition dates to see if we’ll be near you in the future.

At Essex we pride ourselves on being a welcoming and inclusive student community. We offer a wide range of support to individuals and groups of student members who may have specific requirements, interests or responsibilities.


Find out more

The University makes every effort to ensure that this information on its programme specification is accurate and up-to-date. Exceptionally it can be necessary to make changes, for example to courses, facilities or fees. Examples of such reasons might include, but are not limited to: strikes, other industrial action, staff illness, severe weather, fire, civil commotion, riot, invasion, terrorist attack or threat of terrorist attack (whether declared or not), natural disaster, restrictions imposed by government or public authorities, epidemic or pandemic disease, failure of public utilities or transport systems or the withdrawal/reduction of funding. Changes to courses may for example consist of variations to the content and method of delivery of programmes, courses and other services, to discontinue programmes, courses and other services and to merge or combine programmes or courses. The University will endeavour to keep such changes to a minimum, and will also keep students informed appropriately by updating our programme specifications.

The full Procedures, Rules and Regulations of the University governing how it operates are set out in the Charter, Statutes and Ordinances and in the University Regulations, Policy and Procedures.

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