MSc Risk and Stochastics

About the MSc programme

This programme provides high-level training in probability theory and statistics for random processes with applications in the areas of insurance and finance and their interface. It includes a comprehensive and unified approach to all quantitative aspects of modern actuarial science. Students receive rigorous training in mathematics and scientific computation and are introduced to a range of schemes for risk transfer, sufficiently broad to equip them for highly specialised work in insurance, pensions, investment, and banking and for independent research in these areas.

The Programme offers excellent prospects for employment and further study. Students can gain employment in the finance or insurance industries. They can also go on to do a higher degree. Furthermore, the Department has good relations with the financial services industry, particularly insurance and professional bodies.

The programme is mathematically advanced and suitable candidates will normally hold a good BSc degree in actuarial science, statistics, mathematical economics or mathematics. This should include training in analysis and linear algebra, with rigorous proofs, and probability theory at the level of our third year undergraduate course Stochastic Processes. Each MSc student has an academic adviser who is available for guidance and advice on academic or personal concerns. The compulsory courses lay the foundations in advanced stochastic models and methods and give a broad introduction to theories of risk exchange in insurance and finance. Students can choose options in statistics, mathematics and finance.

Your application should be submitted as early as possible and must include: 

• A personal statement, no longer than 150 words, outlining your reasons for wanting to study Risk and Stochastics. 
• Course descriptions and reading lists for advanced courses in mathematics and statistics in your degree (either held or pending). 

Please note that the Department of Statistics does not require references to be submitted with your application form. However, you should include contact details of one person who is familiar with your academic achievements. Normally, this will be a tutor from your current or previous academic institution. The Department may contact this referee if it is deemed useful when considering your application.

Compulsory courses

(* half unit)

• Stochastic Processes*
• Insurance Mathematics
• Stochastic Finance
• Computational Methods in Finance and Insurance*

Options

Choose two from:

• Derivatives*
• Quantitative Methods for Finance and Risk Analysis*
• Continuous Time Optimisation*
• Probability and Measure*
• The Mathematics of the Black and Scholes Theory*
• The Foundations of Interest Rate, Foreign Exchange, and Credit Risk Theory*
• Time Series*
• Advanced Probability Theory*
• Financial Statistics* 

Full course descriptions at: lse.ac.uk/statistics|