Looking at the economic climate today, the challenges of the current financial environment have revealed the need for a new generation of professionals who combine training in traditional finance disciplines with an understanding of sophisticated quantitative and analytical tools. A new book authored by Aparna Gupta, associate professor and co-director of the Center for Financial Studies at the Rensselaer Polytechnic Institute Lally School of Management, shows how simulation modeling and analysis can be utilized to help solve risk management problems related to market, credit, operational, business, and strategic risk.

The new book, Risk Management and Simulation, presents simulation models and methodologies in an effective, user-friendly way to address many of these risk management problems.

According to Gupta, many strong career options are available for students who study risk management in their academic program, including positions such as risk analysts, senior risk specialists, risk management developers, or quantitative modelers. “In response to the global financial crises of the past years and the ensuing regulatory challenges, well-trained risk management professionals will be essential for ensuring a more robust global financial system that aims to prevent future crises,” Gupta said.

The publication includes applied examples, problems, and exercises that make it appropriate for academic courses, but also a valuable reference for certification exams, such as the Chartered Financial Analyst (CFA) exams, Financial Risk Manager (FRM) certification exams offered by the Global Association of Risk Professionals (GARP), Professional Risk Manager (PRM) exam offered by the Professional Risk Managers' International Association (PRMIA), and actuarial exams.

“Dr. Gupta’s work exemplifies the faculty research at the Lally School with its connections to real-world issues,” said Tom Begley, dean of the Lally School. “Our students learn from and work closely with our faculty who provide them with the latest in academic knowledge in dealing with the challenges in business and management and with learning experiences beyond the classroom, including research opportunities, networking, and involvement with business.”

For the past 13 years, during her tenure at Rensselaer, Gupta has developed and taught courses in financial engineering and quantitative methods in finance at the undergraduate and the graduate level. She also serves as the director of the Master of Science in Financial Engineering and Risk Analytics (FERA) program at the Lally School, and  co-director of the Lally School Center for Financial Studies, which fosters high-quality research and learning.

“The Lally School program in Financial Engineering and Risk Analytics, along with the activities of the Center for Financial Studies, is very timely and well-positioned to prepare a new era of quantitatively trained finance professionals,” Gupta said. “Learning leading-edge financial theory, as well as advanced analytic techniques, is key to success as a financial expert.”