1. From the Heat equation to Financial security
AMS conference on Education
October 12, 2018
Sonin Kwon
Ph.D., FSA, CFA, CAIA
Managing Director,
Derivative Portfolio Manager

2. Introduction CONTENTS PAGE
As an employer and a colleague of mathematicians in the financial industry, I will try to address the following points: · Why mathematics education matters in the financial industry · What specific skills (math students have) are readily applicable at work · What other general skills math (or any) students need in order to thrive.
CONTENTS PAGE
Educational Requirements
Value of Mathematical thinking 5
Particular Equations
Other necessary skills 7

3. Educational requirements to join the workforce Actuaries require certification
Actuaries as a risk management professional, develop protection products (insurance) and manage financials of providers
Insurance companies are state regulated entities and Actuaries are certified professionals
Path to the Fellowship of the Society of Actuaries includes passing exams on:
Probability
Financial Mathematics
Actuarial Mathematics
Statistics
Predictive Analysis
Economics, Investment, Accounting and Finance
Quantify time value of money with uncertainty of events

4. Educational requirements to join the workforce Financial analysts require certification
Financial analysts are involved in various investment related functions
Chartered Financial Analysts work at wall street banks, brokerage firms and any other secondary financial firms
Path to the Chartered Financial Analyst includes passing exams on:
Statistics
Financial Mathematics
Economics
Accounting
Investments
Portfolio management
Risk management
Estimate the value of the tangible and intangible objects

5. Value of Mathematical thinking
Critical thinking skill
Logical thesis of storyline
Understanding of hypothesis
Boundary conditions
“#N/A”
Evidence/Proof based debate
Formulating conjectures
Collecting and creating a model to check one’s understanding
Code computer programs and have machine do the calculation

6. Particular Formulas Black-Sholes Time Value of money Crypto Currency
Need to understand concepts and derivation of formulas

7. Quantitative Skills Large data New data Time series Regression
Optimization
Systematic investing/trading
Statistics, Computer programing, Data science, AI & Machine learning

8. Day to day work Insurance liability estimation via cash flow models
Scenario models to forecast economic conditions, risk management, option pricing
Investment instrument valuation
Developing derivative products
Asset allocations
Portfolio optimizations
Mathematical Commonsense

9. Other important skills
Written and verbal communication skills
Presentation skills
Collaboration
Diversity and Inclusion
Strategical
Letting it go: 80/20
Negotiation
What matters are People