Risk Management or Master in Computer Science

[Zeyun Wei]

I just graduated from a financial engineering program, and going to making a decision between a risk management job and further graduate study in Computer Science. I got an verbal offer of market risk analyst position from a bulge bracket bank, but the compensation is way below my expectation. I also have an admission offer from a top CS program in the U.S.

My career goal is to be a quant trader at bulge bracket banks or hedge funds. I fear that it would be very difficult to switch to front office job after starting the career in risk management. I guess BB and hedge funds are more inclined to hire candidates from CS background. I am wondering what choice can best help me to achieve my career goal. Thanks so much!

 

[pingu]

Doing another degree in computer science won't get you any closer to what you want to do. Actually it will put you farther out since you will be removed from finance and into a theoretical world that has very little to do with finance.

 

[MRoss]

If you have a strong personality starting in risk management won't hinder your career path AT ALL. Do you think you have the personality to make lots of friends and network a ton?

Anyhow, a Master's in CS on top of MFE is pretty much useless.

 

[BeepImaJeep]

I disagree with the previous poster. Of course you can still become a quant trader after starting in risk management, but why would you give yourself that handicap? Just my opinion -- it will hinder the transition to becoming a trader. Your resume will be automatically filtered out at some places, you'll get less contact from recruiters, etc. I personally don't know anyone that made the jump and I'd be surprised if there were very many.

Not that I think that another degree in CS is necessarily the correct career move for the OP or worth the time and cost, but I'm pretty sure it gives a higher chance to eventually land a job as a trader between the two choices.

 

[MRoss]

I disagree with the previous poster. Of course you can still become a quant trader after starting in risk management, but why would you give yourself that handicap?

I don't think you read what I wrote. If you are someone with a great personality, you can do anything.

The head of financial engineering where I work was a Literature major. A risk associate who worked with me just landed a portfolio management role at a top hedge fund.

2 years in risk > a CS degree even for a trading role.

 

[BeepImaJeep]

No, I read what you wrote. There are always people who do well in this industry with hard work and non-traditional backgrounds (I know someone with an art history degree, and someone else without a college degree even) -- but they are the outliers. This was a lot more prevalent for people starting out prior to '08 than it is now, and you said "starting in risk management won't hinder your career path AT ALL," which just isn't true. Giving one anecdotal example "a risk associate who worked with me just landed a portfolio management role at a top hedge fund" doesn't really validate that statement.

Your argument is equivalent to saying that if you are someone with natural athletic abilities, you can become a professional football player by joining the cheerleading squad in middle school after missing the football tryouts. Sure it's tangentially related, but it's still better to spend that time working out on your own, and more importantly, NOT have the stigma of being on the cheerleading squad.

If OP had the charisma, foresight, hardwork, and connections that <1% people do to get that trading interview and crush it after 2 years in risk, I'd argue he would have started off in trading right now. I'm not saying that all hiring managers have a negative perception of people who have worked in risk, but some do -- and that will lower his odds of getting a trading job.

 

[MRoss]

If OP had the charisma, foresight, hardwork, and connections that <1% people do to get that trading interview and crush it after 2 years in risk, I'd argue he would have started off in trading right now.

This is a valid point

 

[Zeyun Wei]

Thank you all for the posts and suggestions! I finally decided to continue my study in CS. Of course, I will try my best to cultivate a strong personality.

 

[pingu]

Thank you all for the posts and suggestions! I finally decided to continue my study in CS. Of course, I will try my best to cultivate a strong personality.

i'm sorry to hear this. Good luck... you are going to need it!

 

[sharan singh]

If you really want to do masters then do it , take classes for part time if you have problem in time management.

 

[Yvonne W.]

This may be too late, but if it's still possible, I would RUN to the firm and beg (not literately) for the offer back. If your targets like to hire CS holders, they are usually looking for PhD in CS. With your background in a semi-science degree (I am assuming your fin engin covered tons of math), the CS is not going to do you any better. From what I have seen/heard, they usually like to hire CS for platform related positions (i.e. building out or maintaining trading system to get a slight advantage). The job experience is MUCH MUCH more important (unless your undergrad degree is not competitive...in that case you are just looking for a pedigree to get your foot in the door), because they want to see that you can thrive in distress & handle sensitive situations.

---- from your name, I am going to assume you are Chinese (I am Chinese)..let me tell you...being in school for long time AND a CS degree is just going to make you another Chinese person in the pile of Chinese applicants.