Prof. Sarath Peiris, Professor in Applied Statistics Head, Department  of Mathematics & Statistics, Faculty of Humanities & Sciences Today we live in a world that involves full of digital data, which is continuously evolving. Thus, making use of such data to draw conclusions is not simple, but Data-Driven Decision Making (DDDM) has been a very [...]

Education

Path for Graduates in Actuarial Science Department of Mathematics and Statistics (DMS), SLIIT

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Prof. Sarath Peiris, Professor in Applied Statistics Head, Department  of Mathematics & Statistics, Faculty of Humanities & Sciences

Today we live in a world that involves full of digital data, which is continuously evolving. Thus, making use of such data to draw conclusions is not simple, but Data-Driven Decision Making (DDDM) has been a very popular scientific approach to decision making which is reliable with a high degree of efficiency. Due to the increasing popularity of DDDM, the demand for graduates with sound knowledge of mathematics and statistics with a background in economics and finance, who are competent in critical thinking and financial data analytics has increased dramatically.  In general, banking, insurance, production companies, and research institutes are one of the largest and most data-driven sectors in the world and so these organizations have to face risk.

Risk and risk management

Irrespective of organizations, the common types of  risk generally considered are strategic risk, compliance risk, operational risk,  economic risk, and security and fraud risk. The process of risk management involves, identifying, analysing, and responding to risk. It includes maximising the results of positive risks and minimising the consequences of negative risks. To face such problems,  these companies need qualified graduates who have sound logical and analytical thinking and who can use the knowledge of mathematics, statistics, economics, and finance together to understand and analyze risk well in advance for the benefit of the company.

The uniqueness of DMS in SLIIT

This significance was well recognised by the Department of Mathematics and Statistics (DMS) in the Faculty of Humanities & Sciences (FHS), SLIIT and thus approval was granted by the Ministry of Education (Gazette number: 2216/39 dated 27th February 2021) to offer, “BSc (Hons) Degree in Financial Mathematics and Applied Statistics (FMAS)”.  A separate department for Mathematics and Statistics is currently available only in SLIIT among all the non-state private universities in Sri Lanka.

About the  degree

This degree is specially designed to cater to the needs of a popular area of employment where we identified a dearth of qualified graduates with a good knowledge of theoretical concepts and applications of mathematics and statistics to various areas in business. No such degree with a combination of Financial Mathematics and Applied Statistics is offered by any of the local universities or other non-state universities in Sri Lanka.

Mathematics is the foundation of the financial world. It allows investors, traders, and bankers to make optimal decisions and rationally mitigate risk. Financial mathematics (FM) is the application of mathematical models to actuarial sciences in financial activities. Applied Statistics (AS) is the application of statistics to solve real problems based on data.

The course content of the degree has been designed by considering all these factors and also using information gathered from market surveys and the experience of financial experts.  This degree programme is an excellent choice for students who wish to continue their education with graduate studies in leading universities in the world.  The degree includes the most important areas in Financial Mathematics, Applied Statistics, and Econometrics and some useful courses in Finance and Computing with sufficient technical depth to equip graduates with the ability to develop novel analytical tools for new scientific applications and industry problems. In addition, the actuarial internship and research project in collaboration with the actuarial industry have been included.

The intended learning outcomes (ILOs) of the degree are to:

  • Exhibit a broad and coherent body of knowledge in fundamental areas in Mathematics, Statistics, and Finance in analyzing data, with a particular focus on the decision in optimization, risk analysis, and stochastic processes.
  • Acquire strong analytical skills to analyze financial information in a meaningful and logical manner and communicate acquired findings to diverse audiences in a simple way.
  • Making decisions in complex and unpredictable situations and taking personal responsibility.
  • Work with teams that often include senior managers and professionals in other fields.
  • Unique selling points
  • The degree with the combination of Financial Mathematics, Applied Statistics, and Economics is offered only the SLIIT.
  • This degree is specially designed to cater to the needs of a popular area of employment in various areas of business where we identified a dearth of qualified graduates.
  • Such graduates can lead to top jobs in the Banking and  Insurance Sector, Real Estate, etc. where actuarial work is highly involved to model the risk of an event.
  • The core values of the degree are (i) professional, (ii) responsive, (iii) creative, (iv) inspiring, and (v) collaborative.
  • Enrolling for higher degrees in a different field such as data science, business analytics, financial mathematics, actuarial science, statistics, econometrics, etc. in top-ranking universities in the world, is easy.

Present development

The first batch started in July 2021 and the second batch started in August 2023.  We are planning to introduce few specialization courses within  FMAS soon. We are trying to negotiate with some universities in Australia for a 2+ programme so that students can go to Australia at the end of the second year to obtain their degree if they wish. The possibility of getting provisional accreditation from the Institutes and  Faculty of Actuaries (IFOA) in the UK is being investigated. Furthermore, the entry criteria for Commerce stream GCE(AL) students having a minimum of three passes with Business Statistics and Economics as subjects is under review.

We already formed the Department Industry Consultative Board (DICB) which consists of well-experienced stakeholders from insurance companies,  government, and private banks, the department of Census and Statistics, Actuarial Institute of Sri Lanka. The main objective is to bridge the gap between the programme outcomes of the degree with the needs of the industry and to obtain an actuarial internship. This training will help to improve the competencies of students in analysing risk problems in the industry which will be beneficial to compete with any foreign graduates.

The students can easily be completed initial examinations to qualify for a fellowship in actuarial. The three main professional bodies that conducted the professional examination in actuarial are: (i) Actuaries Institute in Australia (AIA), (ii) Institute and  Faculty of Actuaries  (IOFAI and (iii)   Associate of the Society of Actuaries (SOA) in USA.

Job outlook

  • The job outlook for actuary careers is great in the world scenario. Some specific career prospects in the world scenario are:
  • Risk Managers
  • Research / Actuarial / Business / Financia Analysts
  • Enterprise Risk Actuaries
  • Insurance Actuaries
  • Investment Bankers
  • Life insurance Actuaries

Prospective employment areas

In addition, to a big demand for graduates in FMAS  in outside Sri Lanka, some of the prospective employment areas in Sri Lank are both government and private banks, insurance companies, financial institutes, and private companies.

Future demand  for actuaries

The Bureau of Labor Statistics in USA projects 21% employment growth for actuaries between 2021 and 2031 much faster than the average for all occupations.  This can vary from country to country. The actuarial profession is a lucrative one. It is a less stressful job compared with other managerial positions. According to the salary expert website, actuaries in Switzerland receive the highest remuneration.

Information

More  information on  FMAS degree programme is available  in:

https://www.sliit.lk/humanities-sciences/programmes/undergraduate-degree-programmes/

 

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