Financial Mathematics Personal Statement

Financial mathematics uses applied mathematical concepts in the field of finance. Whereas an economist may attempt to understand the reasons that a stock is at a given price, in mathematical finances one is more interested in calculating values based on a given price. The basic work involves valuing derivatives as well as risk and portfolio management. This is a fascinating field that while technically challenging is very mentally stimulating. The recent financial crisis has cast doubts on the credibility of the derivatives pricing. It is certain that mathematics was never the problem that lead to the market disaster, rather it was a result of certain faulty theories and unscrupulous bankers. One of my major goals is to aid in the reestablishment of the credibility of mathematical modeling in the financial world.
I have always maintained a broad interest in mathematics. My undergraduate degree was a B.S. in Mathematics and Statistics. I had the opportunity to take many classes in a wide range of disciplines while at university. Classes that I found particularly compelling included data structures and algorithms, which taught me valuable technical skills that I continuously apply in my professional life. Rounded out with a course in problem solving and programming, and computer architecture, I received a comprehensive education in the use of networked systems for the creation of functional systems that can be used for aiding evaluation and decision making in financial modeling. As well as courses in computing, I also took challenging yet gratifying courses in mathematics such as: applied probability and statics, ordinary differential equations, and linear analysis. Math courses were my favorite courses, and I always made an effort to stay current with the reading and continuously engaged in self-assessment. My self-assessments that I would perform involved things like calculating probabilities of every day occurrences, or running Fibonacci sequences in my head while on a long bus trip.
Financial Mathematics is a unique combination of finance and math. I became increasingly interested in financial mathematics while performing financial data analysis and building financial models during my work experiences. I have been working in my present role as an Energy Analyst for nearly the past seven years. My job requires me to do statistical research to support research teams in Crude Oil and Refining. My computing skills acquired during my undergraduate education have made a big impact in my career. A big component of my work involved the development, management, and maintenance of a database of crude product production and pricing. Furthermore, I contribute to various consulting projects by creating spreadsheets and graphics. I also create interactive dashboards for clients that summarize the major developments and drivers of the industry. Our client list is diverse and includes intergovernmental agencies, multinational conglomerates, pipeline transporters, I have strong analytical and problem solving skills. I’ve learned many data analysis skills by working in the oil and gas industries such as: database design, statistical analysis, and building forecast models. I have constructed various models used by the rest of my team in order to support client services, and I am responsible for their constant updating and maintenance. As a result of my experiences I am a subject matter expert for the models and databases used to analyze and project crude oil pricing, production, supply, and demand.
Prior to my current role I also had the pleasure of working as a business analyst and a senior account receivable analyst. In my roles as an analyst I often produced reports that enabled clients to quickly derive the data that they were looking for. Furthermore, these positions allowed me to develop my market research skills, as I was responsible for performing research using a variety of tools. I honed my analytical skills in these positions and was able to proactively identify system failures and created workarounds that prevented catastrophic failures of the corporate systems. Another area that I learned in these positions was the importance of interpersonal skills with clients. One particular instance sticks out in my mind. There was an extremely dissatisfied customer with a large account, however through patience, diligence, and creative solutions, I was able to make him a happy customer, and he continued to subscribe to the host of services we provided.
My goal is to further my education in mathematics and statistics and apply them to the financial world. I want to learn how to work with complex mathematical and financial models in order to support clients and innovative thinkers in a wide range of industries. Quantitative modeling intrigues me and derivative and risk analysis are areas that are of particular interest to me. While the immediate application of the skills I will learn would be to the financial world, I am also interested in the field academically and perhaps would like to pursue my PhD in the field. A PhD in the field would allow me to influence future generations of financial analysts and their modalities of thought, as well as to do deep levels of research in areas of mathematical modeling which interest me.
The diversity of the student body is also an important element of the education insofar as it would allow me to meet people with backgrounds in the sciences, engineering, and people with business experience that is different from my own. The enrichment that they would provide is incalculable as they may have ideas regarding the application of the material we learn in areas that I would not have thought of. The University of Chicago is the ideal place for me to continue my education, as it is a major center of education and attracts the best and the brightest from the entire world. The depth of courses offered by the University is unparalleled and there is a wide selection of interesting classes available. With courses in Statistical Risk Management, Portfolio Theory and Risk Management, and fixed income derivatives, I will be constantly engaged in exciting and practical learning. Furthermore, the seminars that are available such as the one on Banking and the Finance Crisis, will teach me about errors that have been corrected in the financial system while at the same time help me to identify and correct current problems that are still uncovered.
In sum, I would like to engage in rigorous academic discourse and to hone my mathematical skills for the betterment of the financial system. My goal is to develop the skills I already possess, as well as learn new ones that will help me support clients or teach the next generation of financial professionals. The University of Chicago offers the ideal environment in which I can master new skills, hone old ones, and at the same time expose me to an interesting collection of varied professionals. The diversity of the student body will enable great networking opportunities and broaden my horizons by showing the practical implementation of the knowledge we acquire in a wide range of industries.