1. Career Opportunities in
Finance Industry and
Business Analysis
x
F x f t dt
Dumaria R. Tampubolon, Ph.D

2. Facts
 Living people have needs: primary,
secondary, tertiary
 People live on earth and is part of the
universe
 People need to work
 People need to take care and manage
(natural) sources
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 2

3. Facts
 UNCERTAINTIES
 People die
 People get sick
 People loose jobs
 Natural disasters
 Accidents occur
 Businesses fail/collapse/bancrupt
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 3

4. Risks
 Definition of Risk:
Exposure to the chance of loss or injury
 Financial risk:
The probability of loss inherent in
financing methods which may impair
the ability to provide adequate return.
http://www.businessdictionary.com/definition
/financial-risk.html
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 4

5. Statistics
 What?
Statistics is the science of collecting,
organizing and interpreting numerical
facts, which we call data.
 Who uses statistics?
government (or policy makers in the
government); actuaries, economists;
econometricians; financial advisors; policy
makers in business; meteorologists;
psychologists; politicians; doctors; farmers;
engineers and scientists; teachers; etc
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 5

6. Managing Financial Risks
 One way to manage financial risks:
Insurance and Pension Fund
 Insurance:
Life Insurance and
General Insurance
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 6

7. Insurance: Definition
A vehicle to transfer pure economic
(or financial) risks
 Liability to compensate for loss or
damage arising from specified
contingencies such as natural
disaster, fire, theft, negligence,
injury, death, etc
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 7

8. General Insurance
Relates to the insurance of
property and liability; may also
relate to the insurance of the person
which is not covered by life
insurance.
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 8

9. Noble Prize for Economics
 http://www.pbs.org/newshour/rundown/2
010/10/this-years-nobel-prize-winners-in-
economics-critics-and-background.html
 http://www.huffingtonpost.com/2011/10/1
0/nobel-prize-economics-sargent-
simms_n_1003025.html
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 9

10. Noble Prize for Economics
 Christopher Sims (professor at Princeton
University) and Thomas Sargent (teaches
at New York University and a visiting
professor at Princeton) are winners of the
2011 Noble Prize for Economics.
 Devised tools to analyze how changes in
interest rates and taxes affect growth and
inflation → create mathematical models
that central bankers and other leaders can
use to devise policy proposals.
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 10

11. Background knowledge in
Managing Financial Risks
 Mathematics and Statistics
 Computation (programming,
statistical package)
 Actuarial Science (Statistics,
Mathematics, Finance, Economics)
Applications in: General Insurance,
Life Insurance, Pension Fund,
Investment, Risk Management.
Dumaria R. Tampubolon - Free IT
19 November 2011 Saturday Lesson 11