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Risk Management

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Wall Street's Quants Feel Misunderstood

Buck themselves up by saying, "I'm good enough, I'm smart enough, and gosh darn it, people like me!"

Pity the misunderstood Wall Street quant. Approximately 86.3% of quants feel their supervisors have the same or less understanding of the job of a quant than they did a year ago, finds a survey of 400 quants and risk professionals released today.

The survey asked respondents about the relationship between quants and their managers. Results included the following findings:

- 64% of quants feel that their supervisors either do not at all understand or only somewhat understand the job of a quant.

- 86% of quants feel their supervisors' level of understanding of the job of a quant is the same or worse than it was a year ago

- 70% of quants feel that the level of understanding of the role of quants within their institutions has decreased or has not changed at all from a year ago.

The survey, which was conducted by 7city Learning, a global financial services training company, sampled a random selection of alumni from 7city's Certificate in Quantitative Finance. Respondents work principally for global financial institutions in the areas of quantitative finance and risk management.

Quants and risk managers have been pointed to by many economists as one of the principal reasons the global financial crisis escalated so precipitously. Dr. Paul Wilmott, course director for the CQF, finds these survey results to be especially troubling, not least because the start of the global financial crisis took place some 12 - 18 months ago.

"These numbers are alarming," said Dr. Wilmott. "They indicate that even with the events of the past year, financial institutions are still not taking the importance of financial education seriously, especially as it pertains to improving relationships and understanding between quants and their managers."

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