This is a session of Topic 5: Statistics education and the wider society Full topic list
(Tuesday 4th, 16:00-18:00)
Statistics education in the financial and actuarial world
AbstractThe recent development of international financial markets relies largely on the use of statistical tools. Risk management techniques cannot be assessed without a proper understanding of probabilistic models and general stochastic processes. The importance of these analytical tools is such that the study of financial markets behaviour cannot be approached without implementing state of the art statistical and econometric techniques.
A specific risk management area where the importance of statistical analysis have always been acknowledged is the actuarial science. The actuary, who can be described as the risk manager par excellence, is required to master quite in depth advanced statistical tools. During the past few years we have been witnesses to the much expected convergence of the financial and insurance sectors, both of which show common needs regarding risk management and statistical models. In fact, insurance and reinsurance companies are becoming one of the major players in today’s financial markets, not only in their traditional investment-side role, but also, and that is the real novelty, creating new risk management techniques. For instance, the statistical study of low frequency, high intensity events is a challenge for our subject.
The goal of this session is to highlight the need for a statistical education both in the financial and actuarial areas, as we try to identify the common guidelines that should shape the instruction of these subjects.