– 86.3% of quants feel their supervisors do not have a better understanding of the job of a quant than they did a year ago
– Survey indicates that instead of talk about a ‘recovery,’ more focus should be placed on ‘have we learnt our lessons’
A series of startling results from a survey of almost 400 active quants and risk professionals has been released today, revealing a significant gap in understanding between quants and their supervisors.
According to the survey, the majority of quant and risk management supervisors do not fully understand the work that their teams do. Furthermore, their level of comprehension has not improved in the last 12 months.
The survey asked respondents about the relationship between quants and their managers. Results included the following findings:
– 64% of quants feel that their supervisors either do not at all understand or only somewhat understand the job of a quant.
– 86% of quants feel their supervisors’ level of understanding of the job of a quant is the same or worse than it was a year ago
– 70% of quants feel that the level of understanding of the role of quants within their institutions has decreased or has not changed at all from a year ago.
The survey, which was conducted by 7city Learning, a global financial services training company, sampled a random selection of alumni from 7city’s Certificate in Quantitative Finance (CQF). Respondents work principally for global financial institutions in the areas of quantitative finance and risk management.
Quants and risk managers have been pointed to by many economists as one of the principle reasons the global financial crisis escalated so
precipitously. Dr. Paul Wilmott, Course director for the CQF, finds these survey results to be especially troubling, not least because the start of the global financial crisis took place some 12 – 18 months ago.
"These numbers are alarming," said Dr. Wilmott. "They indicate that even with the events of the past year, financial institutions are still not taking the importance of financial education seriously, especially as it pertains to improving relationships and understanding between quants and their managers."
According to Dr. Wilmott, despite the negative situation, a pragmatic solution to training and development can turn things around. "Good education is undervalued in this industry. With the CQF, everything we do is real world. The syllabus is extremely practical, based on applicable data and common sense. Most importantly, we instill confidence in our graduates that they can do their own modeling and think for themselves. We teach skeptical thinking, so that they can stand up and be counted, questioning assumptions and taking a much more critical approach to risk and models."
The Certificate in Quantitative Finance is directed at people who are working in or interested in moving into derivatives, development, risk management and quantitative trading. The six-month part-time course gives delegates access to an accomplished faculty made up of market practitioners, who provide practical training in every aspect of quantitative finance. Founded and led by Dr. Wilmott, the CQF continues to be the largest and fastest-growing quant course in the market. More information on the CQF can be found at www.cqf.com.
The full survey results are available to be viewed here –
http://www.cqf.com/content/cqf-alumni-2009-survey-results-risk-managemen
t-quantitative-finance-and-global-financial-cri.
