Download Wanted: `Black belts in finance - Sa-Dhan

Wanted: `Black belts in finance'
Anjali Prayag
The Hindu Business Line, Dec. 24, 2006
Financial engineers are better equipped to deal with complex products in
capital market
With the deepening of the financial market in India, India Inc, so far
happy with IIT-IIM grads, is now looking for `financial engineers'.
Popularly called "black belts in finance", financial engineers are better
equipped to deal with complex products and models in the capital market.
Says Ms Judy D Olian, Dean at UCLA Anderson School of Management,
California, who's in India currently talking to leading investment banks,
commercial banks and IT companies to offer financial engineering as an
executive education programme, "Financial modelling and risk
management is a much-sought after skill offered by financial engineering
programmes."
Financial engineering
Though most B-schools offer financial engineering as part of their
business management programme, it is still fleeting and largely
theoretical.
Current needs of Indian banks and MNC banks in the country are fulfilled
by IITians and MBAs with an operations research background.
"There is a shortage of skilled manpower in this business," says Mr Ajay
Mahajan, Group President, Financial Markets, Institutions and Investment
Management at Yes Bank, Mumbai.
Risk management
Risk management involves mathematical modelling and the existing
talent base does a little bit of learning on the job.
Says Mr Mahajan: "Engineer-MBAs do shape up well. But of course, it
would help if they could get an advanced course in financial engineering."
But these programmes have to necessarily be simulation-based, he
warns, as theories are being taught at B-schools in the country.
A financial engineering programme, offered only by some top B-schools in
the US and the UK, is an 18-24 month course and an Indian student has
to shell out about Rs 30 lakh for the programme. "When we offer it in
India, it would cost far less and of course, also save time for employees,"
says Ms Olian.
Agrees an employee of an MNC bank in India who has enrolled for a
financial engineering programme at Carnegie Mellon, "If the programme
is offered here, there would be at least 800-1,000 employees in the
sector willing to take up the programme."
Companies themselves are willing to sponsor such programmes, as it
would help them retain precious talent, which is now moving overseas for
the programme.