Financial Regulation and Risk Management
The volatility of the financial markets and the failure to anticipate credit crunches and panics both point to the same stubborn fact: finance has forgotten the lessons of economics. Starting with factoring moral hazard into decision constraints, taking into account economic agents’ behaviour is today of paramount importance in determining a regulatory framework that can stabilise the economic cycle without contracting the supply of loanable funds. In other words, in order to regulate efficiently as well as anticipate and apply new regulation constraints taking into account the negative effects of procyclical regulation efforts and regulatory time lags, one has to understand economics.
Sciences Po's Department of Economics created the Master degree in Financial Regulation and Risk Management in 2012 with this in mind: risk managers and regulators must be well versed in both economics and corporate finance so as to be able to identify the relevance and timing of regulation and to optimise regulatory framework compliance at banking level.
Global economic governance in the aftermath of the financial crisis has created new job opportunities for those financial regulators and risk managers who have been trained to understand the international financial structure as well as the complexity of financial products and of regulation, and who can anticipate future shifts in regulation.
The Sciences Po Master in Financial Regulation and Risk Management provides future graduates with a cutting-edge on the job market:
- Expertise – the curriculum offers a wide range of courses in economics, corporate and market finance and risk-audit-compliance courses, drawing upon the Department of Economics’ expertise in political finance and economics;
- Comprehensive - concurrently, students are thoroughly prepared – and are registered for them at no additional cost - for three internationally recognised financial exams: the Chartered Financial Analyst (CFA), Level 1 exam, the Autorité des Marchés Financiers (AMF) Certificate and the Financial Risk Management Certificate, Level 1;
- State of the art - both the academic programme and the preparation for the CFA, AMF and FRM Certificates are fuelled by the newest research in the fields of monetary macroeconomics and regulation made available through a unique partnership between the Banque de France and Sciences Po’s Department of Economics, national leader in economic research – a Chair of Banking Regulation;
The programme is deliberately intensive: the three semesters of courses and case studies, taught by internationally renowned academics and front line European regulators and bankers, are scheduled consecutively, thus allowing students to come away with Sciences Po’s Master degree in just one year (430 hours of classes, 120 ECTS).
Guillaume Sarrat de Tramezaigues
Executive Director of the Department of Economics
This one year (3 semesters) Master degree is designed for young graduates with an economics, finance, law or engineering background.
Taught entirely in English the curriculum provides a unique comprehensive view of political finance, with an in-depth analysis of financial regulation, risk perception and compliance (risk management and control). True to Sciences Po’s educational project, it offers an interdisciplinary approach combining economics, finance, public policy, law, regulation, business management and ethics.
The principal topics dealt with are risk management, regulation of financial markets and institutions, and regulation compliance and management in light of current financial, economic and banking crises.
Main orientation and specific features
Students will prepare and take the Certified Financial Analyst Level 1 examination as well as the French Autorité des Marchés Financiers Certification and the Global Association of Risk Professionals (GARP)’s Financial Risk Management Part 1 certification.
The CFA Certification Level 1 is an international investment credential recognized and respected worldwide by employers, investment professionals and investors. It provides a strong foundation of real-world investment analysis, portfolio management skills and practical knowledge needed in order to succeed in today's investment industry. Throughout the year of the programme, students will receive 96 hours worth of training by senior professionals in order to obtain this credential.
The new French Regulation Authority (AMF) requires in France that anyone who works with financial instruments demonstrate a minimum level of knowledge in the field. This regulation applies to employees of investment and retail banking, asset management companies, brokerage companies or any investment services provider. In addition to the CFA Level 1 training, students will receive 24 hours worth of classes tailored to meet the requirements of the AMF examination. And for the FRM Part 1 certificate, students will receive 48 hours worth of classes throughout the year, taught by senior professionals.
Built-in CFA, AMF and FRM certificate training is one of the most emblematic praxis oriented components of the Master programme and that differentiates it from similar Master degrees in the field.
In 2013 all students who took the CFA and AMF exams were certified – a 100% success rate that is the objective for the FRM Part 1 certificate training, added to the Master programme in 2014.
Graduates are be well qualified to a wide range of decision-making positions in a number of sectors:
- Regulatory authorities (international organisations, central banking, national regulation authorities)
- Banking industry (risk management, risk analysis)
- Financial consulting and audit (internal and external)
Société Générale, Mazars, PricewaterhouseCoopers, Rothschild & Cie are among the most important corporate partners of the programme.
In 2013, all students enrolled in the programme received a job offer (including the VIE) before graduation:
- 74% accepted a job offer abroad
- 56% joined audit-consulting firms and 44% the banking industry
- Recruiters included the HSBC, Mazars, Ernest J Young, Société Générale