Financial Modeling Module

Welcome to the Financial Modeling Module home page! Please review all of the information and links provided below.

The Financial Modeling module, which currently supports the QFI track and is recommended to be taken first within the track, seeks to expand the knowledge first learned in the MFE course in both theoretical and practical aspects. In addition, in a quest to prepare candidates for the real world, we will introduce a hands-on experience operating with financial models as we explain the modeling aspects of an annuity product and ask the candidates to follow along. We then explore the model and interpret the results.

By the end of the module, we expect that the candidates will be able to:

• Identify options embedded in financial products and the risks they pose.
• Describe derivative types and demonstrate the use of derivatives in risk management.
• Describe basic risk mitigation methods.
• Apply the techniques of Monte Carlo simulation as it applies to financial risk models and option pricing.
• Identify and explain modeling products and their inherent risks.
• Analyze the outcomes of various events and situations affecting an insurance product.

Learn more about changes coming to this track.

Recognized by the Canadian Institute of Actuaries.