Alumni Newsletter September 2015
MFE Profile: Josh Macdonald
We recently interviewed Josh Macdonald (MFE 2014), a market risk analyst working in Toronto for Validus Risk Management, a UK-based financial risk management consulting firm. We asked him about his experiences with our MFE program and his new role in management consulting.
1.The Master of Financial Economics (MFE) Program is an interdisciplinary partnership between the Department of Economics, Department of Statistical & Actuarial Sciences, Ivey Business School and Faculty of Law. What value did the interdisciplinary approach bring to your learning experience from both a student’s and now a working professional’s perspective?
The MFE’s interdisciplinary approach provided me with invaluable training in the use of quantitative tools, a deep understanding of financial and legal frameworks, and solid training in the language of business. As a consultant in risk management, I see every side of our business, from sales and strategy development to trade execution and relationship management. The MFE gave me the confidence that I have the tools needed to provide and articulate the best solutions to our clients.
Financial risk management is the perfect synergy of the four disciplines. It requires a solid understanding of statistics, derivative structuring and regulation. Being able to articulate how these all come together in developing a robust hedging programme is key to our business, and I believe I am well-prepared by the MFE.
In terms of the regulatory environment, the financial crisis has led to new constraints that effect entities looking to implement hedging programmes. Being able to read and understand the law, understand how products are structured, and to have the ability to converse with legal teams are essential skills of today’s risk managers.
2.Where did you complete your MFE internship, and how did the internship contribute to the professional path you have chosen?
I interned at the Ontario Teachers’ Pension Plan (OTPP) on the private asset side of their Asset Mix and Risk (AM&R) Department. AM&R oversees risk exposures to the fund for all privately held assets, including assets which are yet to be acquired. At OTPP, I had a chance to work on the unique aspects of private over public equities and see the risk side of the business. I conducted extensive risk analysis on leverage, regulation, contracts, currency, political, macro, etc. and made public risk proxy recommendations for newly acquired private assets to be used in the risk modelling process.
Aside from the functional knowledge I acquired, what OTPP really impressed upon me was the importance of professional workplace communication skills and the value of building one’s network. For example, my research always concluded with a presentation to senior leadership whether it was to our VP or to another department. Self-confidence and strong communication skills are essential to professional success. Moreover, taking the time to build a workplace network can pay significant dividends when the time comes to start a new project and you need to call on a colleague’s expertise.
My position at Validus is the perfect synergy of both my internship and my MFE training. I have the opportunity to work with some of the largest alternative funds in the world, and to interact with the CEOs and CFOs that manage these funds. I have a front row seat to some very fascinating conversations.
3.What do you find exciting in your current role?
Working at Validus is an incredible opportunity, and I truly could not have asked for anything more exciting. Being employed as part of a highly-skilled and rapidly growing team, and as their first North American hire, I have the unique opportunity to engage in all aspects of the business. Every day is different. It is incredible to be hands-on at every stage of our cycle – developing leads, making sales calls, pitching products, drafting proposals, designing, executing and monitoring solutions, and retaining clients through managing relationships. As a consultant, our clients come to us with problems and it is our job to offer-up solutions. While this comes with great responsibility, it also encourages you to stay creative and think outside the box.
It is also very exciting to be working with C-level executives from $10B+ investment funds all the way through to SMEs. It is a very rich learning environment providing exposure I likely would not have had if working in a larger firm. I can see where I add value and that is very gratifying.
4.What would you tell employers considering hiring an MFE student for an internship or full-time employment?
The interdisciplinary training puts MFE students in a position to add value from day one. Like other students, they will not have all the answers, but they will have the tools and language needed to come up with solutions. The MFE program puts students in a position to help your company, and they bring to the table disciplinary synergies that you are unlikely to find in other candidates.
If you want to meet our MFE students come join us at our MFE Open House in Toronto on Friday, November 27th at the Ivey Tangerine Leadership Centre. For more details, please contact us at mfe@uwo.ca or 519.661.4150.
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