BigDataFr recommends: How can actuarial science skills be applied in investment banking?
[…] To understand how skills in actuarial science can be applied to investment banking we need to understand what actuarial science deals with.
So what is actuarial science?
Actuarial science can be defined as the application of mathematical skills to social science to solve important issues. Most of the time the actuaries use statistics to solve the issues by reducing risks in the insurance industry, government, business and in academic research. Actuaries use statistics and mathematical models to predict uncertain events like income from an insurance policy, payout from pension scheme and performance of stock markets.
Actuarial science deals with the technical understanding of the following areas:
- Risk management
- Life insurance
- Corporate finance
- General insurance