Thriving in Turbulence: How Finance Master’s Programs Navigate Volatility

In the ever-evolving landscape of finance, characterized by increased volatility, the need for trained professionals with the right set of skills has never been more critical. A finance master’s program can play a pivotal role in preparing students to not only navigate, but also thrive in this dynamic environment.

“The finance industry is inherently at the mercy of external factors – geopolitical tensions, inflation, rising interest rates and technological advances – for good and for bad. That being said, studying a masters in finance is a great way to develop the breadth of skills and knowledge to succeed in such a volatile industry,” says Kira Hughes, head of graduate masters at London Business School’s Career Centre.

To succeed in today’s financial markets, finance students need to prioritize a set of specific skills and knowledge areas. While a strong foundation in traditional finance principles remains crucial, students should also focus on developing a keen understanding of emerging technologies, risk management strategies, and global economic trends.

Proficiency in data analytics and financial modeling is increasingly becoming a prerequisite for success, as the industry relies more on data-driven decision-making.

“There are numerous career paths available to students within the world of finance, each of which will require a degree of specialist and institutional knowledge,” says Hughes. “Most often this knowledge will be provided by the employer at the start of their role. But students are best advised to focus on developing core transferable skills that can help futureproof their careers.”

The Masters in Financial Analysis (MFA) program at LBS offers a rigorous grounding in the finance fundamentals, as well as the option to specialize in specific areas of interest. Keeping the curriculum updated with the latest industry trends is paramount for any finance master’s program.

The financial landscape is constantly evolving, driven by technological advancements, regulatory changes, and global economic shifts. Programs need to incorporate real-world case studies, guest lectures from industry experts, and hands-on projects that reflect the current challenges and opportunities in finance.

Keeping the curriculum up to date

Regular reviews of the curriculum and collaboration with professionals in the field can ensure that students are equipped with the most relevant and up-to-date knowledge.

“We have regular meetings with company representatives within our program advisory board, and we have intensive discussions with company recruiters,” says Ralf Fendel, academic director of the Master in Finance program at WHU – Otto Beisheim School of Management.

“We also receive regular feedback from graduate students on their experiences, and collaborating with external lecturers from the financial industry and holding guest lectures on current topics are essential to our teaching philosophy,” he adds.

Specifically, masters students need to understand how algorithms operate and how underlying markets function, not to mention any developments that could occur within those markets. “They also need to understand technology and the implications and opportunities of technological change,” says Fendel. “This includes having all the hard skills necessary to understand the matters at hand and the soft skills to deliver to their colleagues and customers.”

Wouter De Maeseneire, the program director for the Masters in Financial Management degree at Vlerick Business School, agrees. “A world of volatility arguably requires people with a more flexible and adaptive mind and skillset – a finance master does not cover a narrow set of topics but provides a rich overview of many fields and equips people with a toolkit that can be expanded and broadened depending on current dynamics,” he says.

De Maeseneire adds Vlerick Business School, in Belgium, also spends a lot of time instilling a critical mind in finance masters students – telling them to question everything and not take things for granted.

“One of the ways to achieve that is by providing a regular financial news overview, where we discuss and question what goes on in the world of business and finance, whether that’s corporate misconduct, corporate distress and bankruptcies, successful or failed M&A or the rise and fall of firms like WeWork,” he explains. 

How to succeed in the dynamic world of finance

This is a sentiment that’s echoed by Romain Boulland, the academic director of the Master in Finance at France’s ESSEC Business School. “A successful student is someone who is comfortable both with the analytical part of the job, and able to clearly communicate their ideas to management,” he says. “Soft skills are becoming increasingly important to succeed.”

He also offers some more specific recommendations for aspiring finance professionals who aim to pursue a career in this dynamic and challenging field. “Do not restrict yourself because you feel like you don't fit the stereotypical finance profile. The financial sector is very much open to all kinds of profiles and backgrounds,” says Boulland.

Back at LBS, Hughes also has some advice. “I would encourage students to speak to as many industry professionals as possible to find out more about the wide range of opportunities that exist. It is very easy to be persuaded that a fulfilling career in finance means working in investment banking and then moving to private equity at a later stage,” he says. “This isn’t necessarily the case and can come at a cost to what really makes for a rewarding career.”