Quants face lack of understanding of their role by managers

A significant gap in understanding between quants and their supervisors has been revealed in a survey of almost 400 active quants and risk professionals.

The majority (86.3%) of quant and risk management supervisors do not fully understand the work that their teams do, according to the survey conducted by Certificate in Quantitative Finance (CQF).

The survey asked respondents about the relationship between quants and their managers. A majority (64%) of quants said they believe their supervisors either do not understand at all or only understand a bit about the job of a quant. A clear majority (70%) of quants said the level of understanding of the role of quants within their institutions had decreased or had not changed at all from a year ago.

The survey, conducted by 7city Learning, a global financial services training company, sampled a random selection of alumni from its certificate in quantitative finance (CQF). Respondents work principally for global financial institutions in the areas of quantitative finance and risk management. 

Quants and risk managers have been pointed to by many economists as one of the principle reasons the global financial crisis escalated so precipitously.

"These numbers are alarming," said Paul Wilmott, course director for CQF. "They indicate that even with the events of the past year, financial institutions are still not taking the importance of financial education seriously, especially as it pertains to improving relationships and understanding between quants and their managers," he added.

CQF is directed at people who are working in or interested in moving into derivatives, development, risk management and quantitative trading.