Risk is opportunity. Being able to accurately calculate and quantify risk and turning it into opportunities is the secret to success behind many financial and insurance institutions. Failure in doing so could bring about undesirable consequences as exemplified in the 2008 financial crisis. In this sense, I believe that actuaries play a significant role in preventing future collapses like this and minimizing their financial impact by applying complex statistical methods and mathematical knowledge. The important nature of the work of an actuary and the huge responsibility associated with it along with my ardour for mathematics have stimulated my interest in being an actuary - the safeguards of the financial world.
To me, mathematics is the true universal language. Whilst this language can be at times complex, my love for it is derived from its simplicity in terms of logic. For example, 1 plus 2 can never be equated to anything else but 3. Over the years, this passion for mathematics has grown exponentially particularly in the field of statistics and probability. Fewer things give me gr...
Bernd C Kieseier, and Hans-Peter Hartung. Also used for this paper was the article “The risk of
Mathematics is used to pay bills and to cook to give a few examples. It is also used to figure out different formulas for space. Mathematics is used for computing
All organizations and industries experience risk exposure, from both internal and external events. Accordingly, with outcome speculation being uncertain, organizations can experience either negative or positive effects. In general, the IS31000 defines risk as the “effect of uncertainty on objects” (Elliott, 2012 p.1.4). Consequently, the application of risk management practices helps minimize the effects of risk uncertainty on an organization and is accomplished through coordinating an organization’s activities by establishing control and creating policies in regards to risk. Risk’s most evident category is hazard risk which encompasses risk from accidental loss. In addition, operational risk stems from controls,
Rousmaniere, Peter. “Facing a tough situation.” Risk & Insurance 17.7 (June 2006): 24-25. Expanded Academic ASAP. Web. 23 March 2011.
After his visit to a Shell Research Laboratory, my high school teacher in math told us in class that he was so happy with his education, because mathematics had helped him to understand the explanations and demonstrations that had been given by the Shell researchers. He said, "If you master mathematics then you can understand everything." That was certainly an exaggeration, but it nevertheless sounded like a golden message. Since I definitely wanted to have a better understanding of what was going on around me, mathematics seemed the obvious way to go. Also, if it was not much beyond high school math, then it was pretty easy in addition. What could one wish more? So I enrolled in every advanced math class offered in our high school. Pretty soon I discovered that mathematics was much more than a set of principles that helped one to solve intellectual riddles. It was not a finished system that one could aim to master after some limited time, but it was really a way of thinking, a means of expressing creativity: endless, an old established science, but still fresh and with undiscovered green meadows, nearby and far away.
Obviously, financial establishments can endure breathtaking misfortunes notwithstanding when their risk management is top notch. They are, all things considered, in the matter of going out on a limb. At the point when risk management fails, be that as it may, it is in one of the many fundamental ways, almost every one of them exemplified in the present emergency. In some cases, the issue lies with the information or measures that risk directors depend on. At times it identifies with how they recognize and impart the risks an organization is presented to. Financial risk management is difficult to get right in the best of times.
After hours of independently researching the field of Actuarial Science, I contacted Mr. Michael Miller. Mr. Miller is the Director of Insurance Pricing at Catlin Inc., a private insurance company in Atlanta, Georgia. With a Masters of Science in Mathematics and classification as a Fellow of Casualty Actuarial Society, Mr. Miller has thrived in the field of Actuarial Science for twenty years. He has even achieved the position of President of the Casualty Actuarial Society of the Southeast.
Finance is looked upon as a true technical and analytic subject by outsiders, and even by some insiders, but is it only just that? Does the finance professionals prefer to be seen as true math geniuses, when in reality luck has played a way bigger role in their successes? How do biases, probabilities, habits, our mind and other disciplines factor in? How about luck? Not only is the financial sector truly a summation of those factors, but other sectors and aspects of our daily lives are also subject to those forces. While we may not always understand how the world is shaped around us, reading the 5 books provides a way to be an outsider in our own discipline, how great! Through Hagstrom, Kahneman, Taleb, Haidt, and Duhigg, there is a very real
Mathematics is everywhere we look, so many things we encounter in our everyday lives have some form of mathematics involved. Mathematics the language of understanding the natural world (Tony Chan, 2009) and is useful to understand the world around us. The Oxford Dictionary defines mathematics as ‘the science of space, number, quantity, and arrangement, whose methods, involve logical reasoning and use of symbolic notation, and which includes geometry, arithmetic, algebra, and analysis of mathematical operations or calculations (Soanes et al, Concise Oxford Dictionary,
...re encompassing way, it becomes very clear that everything that we do or encounter in life can be in some way associated with math. Whether it be writing a paper, debating a controversial topic, playing Temple Run, buying Christmas presents, checking final grades on PeopleSoft, packing to go home, or cutting paper snowflakes to decorate the house, many of our daily activities encompass math. What has surprised me the most is that I do not feel that I have been seeking out these relationships between math and other areas of my life, rather the connections just seem more visible to me now that I have a greater appreciation and understanding for the subject. Math is necessary. Math is powerful. Math is important. Math is influential. Math is surprising. Math is found in unexpected places. Math is found in my worldview. Math is everywhere. Math is Beautiful.
The Wharton Business school offers a personalized actuarial career path one void of business focus, rather oriented on real-world situations and using mathematical concepts to solve global problems. Hence, I find UPenn’s Wharton School and the College of Arts and Sciences to be truly inspiring as they discover life-saving cures, genetic breakthroughs, examine
Ravi, Sreenivasan. "Statistical And Probabilistic Methods In Actuarial Science." Journal Of The Royal Statistical Society: Series A (Statistics In Society) 172.2 (2009): 530. Business Source Premier. Web. 25 Oct. 2013.
Logic and mathematics starting with basic arithmetic showed me how to follow steps, one at a time and one after another, to arrive at the results, one step at a time and after another. I learned that an error in one step will make all the following steps and results wrong. Mathematics like any other rule and pattern based discipline may show through experience and trial or error, how to solve problems first by following given methods and later, if needed, by combining and exploring different methods.
The reason I decided to pursue a career in accounting is because I have always been interested in the business world and accounting is considered a basic tool of business. I have worked for small and large business firms; also in private and public sectors which helped me develop a strong linking with the industry as a whole and solidified my interest in accounting.
Being a person that started off loving mathematics and experiencing different things I can say my beliefs have changed, but are back to where they began. I believe when it is time to teach mathematics this specific subject is going to have students on their toes ready to learn. As stated in my previous autobiography, “mathematics serves as a good subject for people to understand because it is something that follows you after school”, this particular statement serves as true because numbers and operations are real world things that humans