Author: Veronica Rafaniello

Quantitative finance. Relying on mathematics and statistics to manage complexity

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Once upon a time, there were bankers. There were, and there still are, but in the last twenty years, their work has become more complex. The exponential increase in derivatives (complex financial instruments) starting from 2000 and up to the 2008 financial crisis, joined with a new regulatory approach that led to a more open market, revolutionized the world of finance, giving life to a scenario for which the rules and the models, more than a decade later, still aren’t completely clear.

Data at the centre

It’s in this context that the tools of quantitative finance were imposed: «Risk management and fintech are the response we have developed to face the legacy of the crisis», explained Professor Emilio Barucci introducing the tenth edition of the executive programme in quantitative finance, of which he is director, which will get underway in November 2019 at the School of Management at Politecnico di Milano.
According to Aldo Nassigh, vice president of Unicredit, «the crack of Lehman Brothers is comparable to the French Revolution. It put an end to a paradigm, but we haven’t yet entered the new one. Certainly, however, we can see a trend towards plain vanilla products (standard, simple and linear trades): portfolio volumes are growing, encompassing tens of thousands of derivatives that are individually simple, but put together generate enormous complexity». Nassigh then goes on to specify that the modus operandi of banks is very different from that of fintech companies, and it’s important not to confuse the two strategies: «Banks aren’t data driven, but their activity starts from models of portfolio enhancement, of risk evaluation, of pricing. Only later do they calibrate these models on the data».

Quantitative finance: professionals wanted

It’s clear, then, as Barucci says, that «the use of the quantitative tool, or rather mathematics and statistics applied to the financial sector, has become crucial». And this has translated into new work opportunities, that cover a wider range of positions than normally thought. As Barucci illustrates, the main areas are four: «portfolio management, evaluation of financial products, trading and risk management».
Although these areas are growing strongly, today we still see a lack of adequately trained personnel: «We need numerous quantitative professionals in the financial sector, but we have a hard time finding them», admits Luigi Terzi, head of market risk management at Banco BPM. «If the trader was once someone who tried to interpret market sentiment, today he can’t do without using algorithmic tools that mitigate the risk of certain transactions. But quantitative finance also is used at the sales desk, in financial engineering, in IT, in audit compliances: all areas where quantitative training is fundamental».

Consulting opportunities

Further confirmation of this trend comes from Gianni Pola, Senior portfolio manager at ANIMA Sgr: «The offices that handle discretional portfolio management, once “reserved” for economics graduates, today also hire people with a quantitative background».
The interest in professions of this sort doesn’t come only from banks, whether they be big or small, or groups dealing with asset management. «We are witnessing a gradual outsourcing of expertise on the part of large groups, a process that has greatly favoured the consulting market» explained Barucci. Antonio Castagna, managing partner of advisory firm Iason, is a direct witness of this: «Personally I’m convinced that the pricing model developed in recent years has become mature. The positions we are looking to fill today I would describe as “functional”, that is able to make what already exists work. But, to be able to do this, the quantitative substratum remains essential».

Financial Times Executive Education Rankings 2019

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Executive Education Courses for individuals and companies: Politecnico di Milano’s School of Management among the top 80 business schools in the world and one of the best in Europe with strong ties to a technical university.

The School of Management of Politecnico di Milano offers a wide range of programmes of the highest standard to its executive customers.

This is underlined, again this year, by the Executive Education Rankings for 2019 published today in the Financial Times, listing the School among the top 80 business schools in the world. The Schools is also ranked among the best schools in Europe that belong to a “technical” university, where this focus on engineering and technology brings together a propensity for innovation with management skills.

The Financial Times lists up two different rankings for executive programmes. One is for “customised” programmes, which address the specific needs of corporate customers and designed for their managers and high potential staff. Politecnico di Milano’s School of Management is appearing for the ninth consecutive year and has improved its position in a list that has been shortened by ten places.

The other is for “open” programmes for all managers and professionals wishing to select the training for their professional and personal development independently within the courses offered at MIP’s Management Academy. SoM first entered the ranking two years ago, and now is placed among the “top ten” European technical universities.

Many parameters come into play to determine each position in the ranking (they include the role of companies in designing and evaluating the courses and the School’s international outlook) and they take into account the participants’ rating of the courses, alongside the assessment of the CEOs and HR Directors at the companies benefitting from the courses. This year, the School of Management, stood out in particular for its close partnership with other business schools.

In the words of Andrea Sianesi, Dean of MIP Politecnico di Milano and Alessandro Perego, Director of the Department of Management Engineering: “Our executive programmes are in line with the market expectations, in a climate eagerly anticipating new training methods that open minds to the sweeping opportunities offered through advances in technology and business models.  The market recognises that we have the competence and methodology, which are such distinctive features of Politecnico, to identify the latest trends and prepare managers to take on the process of digital transformation in their companies, redefining corporate processes and roles”.

They continued by saying: “By operating so closely with the corporate world and focusing on business and entrepreneurial topics, we have earned our stripes in the minds of companies and managers”. Another winning factor was venturing into digital learning. In the smart learning model, people can access courses and material at a distance, a great plus point for those with busy lives and difficulties linked to time management”.

Diversity as a business opportunity

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Respect for diversity as an important ethical issue, but also the inclusion of differences as a business lever. Cristina Rossi Lamastra, Professor of Business and Industrial Economics at the Politecnico di Milano Department of Management Engineering, has made diversity management one of her research subjects. Flanked by Mara Tanelli and Silvia Strada, professors with the Department of Electronics and Information at the Politecnico di Milano, and with the support of the linguist Cristina Mariotti, she is investigating the use of data analytic tools to reveal unconscious bias, gender stereotypes in corporate communications.

«Thanks to the Me Too movement, diversity management is an issue that has recently drawn the interest of the general public, but the theme has long been present in scientific literature, in business and academic contexts – the professor explains –. Recently we can say that there has also been an awareness of damages companies can incur from a lack of respect for diversity». The Me Too movement, born in the United States, has focused attention on a delicate issue on which our country, however, is lagging. «We are seeing different speeds in this movement – continues Rossi Lamastra –. The issue of male/female equality is deeply influenced by the culture and goes hand in hand with income, it’s accompanied by greater economic development and a more egalitarian culture based on the entry of women into the workforce».

In addition to gender, diversity management policies also involve other forms of diversity, an increasingly clear sign of our social changes. Or rather, we can say that gender equality isn’t related only to the man/woman relationship but can also touch on other dimensions. Think of LGBTs, for which inclusion policies have in turn become a subject, albeit more recently, of scientific literature. And then there’s the theme of the sum of diversity. Reporting the results of a recruiting test carried out in the United States, Cristina Rossi Lamastra highlights the penalization of women compared to men, but also coloured people compared to whites, leading to coloured women arriving last in rankings of inclusion.

«The problem of diversity management appears to be decidedly complex, as there is no scientific and universally accepted taxonomy for these policies – indicates the Politecnico professor –. But we can say that if you ignore a part of the population, in the case of women half, the relative slice of potential is neglected and the multiplicity of points of view is lost. You lose all the cognitive richness associated with diversity and some studies indicate that this can also lead to an economic loss. By now the scarce presence of women in company management is seen by everyone as a limit, but the problem of discrimination is more serious and urgent in those sectors in which we see it at all levels and not only in management, such as oil & gas, for example, where there’s a clear predominance of men».

But how can a company sensitive to this issue put into practice diversity management policies, which certainly can also benefit its public image? «First, the recruiting process can be improved, focusing on neutral communications and using blind auditions that don’t reveal the gender of candidates, especially in male dominated sectors – concludes Cristina Rossi Lamastra –. New technologies can be useful in this sense».

The issue also impacts Politecnico di Milano and its School of Management, which like most Italian universities, adheres to gender parity principles for university careers and the student population. The most acute problems are seen in areas like mathematics, science and technology, where the presence of women is far below that of men, and forums for discussion and debate have been created to develop mitigating actions.

Develop your soft skills to capitalise on your hard skills

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MIP offers the possibility of choosing from among several elective courses and exchange paths.
During my International MBA course, I had the opportunity to follow not only a series of indispensable modules which furthered my quantifiable knowledge but also to explore the means of developing my interpersonal, or soft skills, which are fundamental in today’s business world.

What impressed me the most was the lesson learned from Prof. Passerini.
Filippo Passerini is known for creating new, progressive business models and driving innovation. He currently serves as global operating executive, consultant, and educator – with affiliations at The Carlyle Group, McKinsey, Columbia University and the University of Alabama, and is a personal advisor to a number of global companies.

His lecture was mainly focused on the importance of soft skills, like contextual and emotional intelligence, developing core strengths and active listening.
This part of the Master was crucial since in the latest business environment soft skills are becoming more and more required. Soft skills training, such as communication and problem solving, boosts productivity and retention. As companies increasingly need to become more dynamic, interconnected and flexible, soft skills are key and also executives now consider these skills important for fostering employee retention, improving leadership, building a meaningful culture and the drive to succeed.

In a sense, customers are also demanding soft skills. The modern market offers consumers an unlimited number of choices through technology. For these consumers, convenience is easy to come by, so customer service is often what influences the choice. The ability to communicate efficiently and effectively with customers is, therefore, a vital factor in an organisation’s success.

Problem-solving, controlling emotions, being goal oriented, time and stress management are among the most important skills, which are also extremely useful in the internal business environment. Managers should be able to listen to employees, have good speaking skills, and be able to think creatively in order to drive their team. A lean and agile approach to change is also key, considering the volatility, uncertainty, complexity and ambiguity of the business scenarios in which we are living and operating.

Finally, we should figure out what we are good at and develop it even further in order to build our core skills and a personal brand. Hard skills are, of course, the bedrock to any successful career but understanding and developing our soft skills is what differentiates us from others, improves us and thus, our working environment.

All careers require at least some soft skills to make hard skills even more valuable.

That’s what MIP enables us to learn, through its challenging courses and activities, its international network and its top representatives willing to teach, such as Prof. Passerini.
That’s the MIP Experience!

Never blow out the flame
Salvatore

 

About the author
 Salvatore Interdonato

Salvatore is one of the students of the 2017 edition of International Part-Time MBA. Answering to the question “what’s your purpose in this world?” he will answer “I’m here to solve problems with more efficiency and productivity.
Problem-solving gives me energy and satisfaction as well as the proof that we can always face new challenges within our companies offering new valuable solutions”.

 

 

Flexibility, technology, responsibility. Smart working is the future

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The word of the moment? Smart, without a doubt. In our pockets or handbags, we all have a smartphone, if we talk about the future, we have in mind the smart city and, when we it comes to the subject of work, there’s smart working.

The Politecnico di Milano already a decade ago, when people were starting to talk about “agile work” and “flexible work”, carried out a specific study on the issue, coming up with the definition of a model “labelled” smart working, which went beyond the concept of teleworking with which it often, mistakenly is used as a synonym. «“Agile work” was born with the aim of reconciling private and work life, in particular to ensure equal opportunity, while smart working involves organizational models and related changes dictated by new technologies – explains Mariano Corso, scientific head of the HR Innovation Practice Observatory and the Smart Working Observatory and professor of Leadership AND Innovation at the Politecnico di Milano –.Smart working is a model of work organization based on greater autonomy for the worker who, taking full advantage of the opportunities of technology, redefines the hours, places and in part the tools of his or her profession. It’s an articulated concept, which is based on critical thinking that restores autonomy to the worker in exchange for accountability on results, while telework involves constraints and is subject to controls on compliance».

Understood in its essence, smart working, overcoming for the first time the barrier between self-employment and subordinated employment, was inserted in the Jobs Act as a efficiency improvement measure for companies and not as a measure of reconciliation between work and private life, even though there is a clear advantage for the worker, for example in limiting travel.

But is it possible to implement smart working in all sectors? «Clearly it works best in the area of information work, clerical and computerized work, but manufacturing also now offers wide possibilities for the application of the principles of autonomy and responsibility – responds Mariano Corso –. In addition, according to the Politecnico’s Smart Working Observatory, about 60% of medium-large companies in Italy have introduced smart working initiatives, while the phenomenon appears quite limited among small companies due to a delay of a cultural-management nature.
Smart working requires a new leadership style with mature managers able to plan activities, monitor results and provide feedback. It should be introduced by working on organizational policies and on the correct reprogramming of available technology and the logic of physical spaces».

When you talk about smart working, what immediately comes to mind are countries that are more advanced than ours in the organization of work, like Scandinavian ones. Is that correct? «At an international level we see lots of concepts tied to that which we label as smart working, which however in many cases, especially in North Europe, originate more from the world of conciliation than in increasing competitiveness – responds Mariano Corso –In this sense, the United Kingdom and Netherlands have adopted a very strong and cogent legislation for companies. Then we have countries that traditionally have a high degree of flexibility in the labour force and make significant use of telework, like Sweden, Norway, Denmark and the Czech Republic. Something more like smart working we find in Belgium, however also in this case we don’t find a regulatory framework like the Italian one, in which, with a revolutionary scope, we see many of the rigidities of subordinated employment overcome».

Smart working is good for the world of work, but not only. It is part of a fundamental and desirable transition process towards a policy of attention to the environment. One of the concepts at the basis of smart working, as is the case for the smart city, is the optimal use of resources and spaces. In addition to limiting travel with a consequent reduction in CO2 emissions, smart working can provide emergency responses, from the reduction of depopulation in some areas of the Trentino area to the reorganization of work in the city of Genoa following the collapse of the Morandi Bridge.

Four companies + one simulation: a glimpse into the MBA Sales Strategy Bootcamp

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The bootcamps are the most intense of the MBA program’s activities. These workshops usually last for a week and contain different lectures given by MIP and visiting professors, company visits and a group assignment. Professor Alberto Cellini, director of the Master in Marketing Management at MIP, has prepared a very exciting agenda for the 2019 version of the Sales Strategy Bootcamp.

We had some inspiring presentations from different companies that set out their sales activities in the Italian market. The team from Lyreco and the Ariston Thermo group presented their KAM activities and CRM application respectively. But the biggest surprise came from the Bayerland representative, who presented the selling strategies of this company that markets German mozzarella in Italy!

The highlight of the week, however, was the business case brought by the Hilti team. It was a contest where 6 different teams had to investigate, through a simulation, how the company approaches its customers and analyzes them. The winning team would be the one who maximized the share of wallet, by increasing the engagement of an existing customer and producing the highest sales figures.

On this occasion, my colleague Clara Diniz Piani, an engineer from Brazil, shared with me her point of view relating to this experience and the story of her success when she approached Hilti for a professional opportunity after finishing the MBA program:

“This simulation was the perfect illustration for grasping the methodology of what Hilti does in terms of sales. It is important to try opening your mind and to think outside of the box when thinking about sales. Understanding the customer’s needs and anticipating solutions is key for building long-lasting business relationships. In the case of b2b sales, it is relevant to analyze the different benefits for each department, so as to better understand what would be a successful action plan for both parties involved.

I met Hilti at their first presentation when they visited our MBA class a couple of months ago. I was impressed by their energy, the work culture and the way they invest in their team like a company. It really inspired me to apply to work with them.

The bootcamp was my second contact and I decided to apply to all the positions they had available through their partnership with MIP. They are a very international company. During the first interviews we had some very honest and transparent conversations. They gave me a lot of feedback and also asked for my opinion throughout the whole process. In the end, they offered me a business development position to attract new clients and build a relationship with them. It’s a new role in Italy but it already exists in some of their international markets. I’m very excited about this new beginning and I think the lessons learnt during the Sales Strategy bootcamp will come in very handy in my new position.”

Stay tuned for my next chapter, when I will give you a list of movies that encompass the spirit of the International MBA program at MIP.

 

About the author
 Roberto Niño Betancourt

Roberto is a student of the International full time MBA. He is a Colombian filmmaker and new media artist based in Milan.
He has collaborated as a post producer for MTV Latin America, as well as many European production companies. He is very passionate about international cross-cultural collaborations, craftsmanship and the sustainable conservation of natural resources.

 

 

L’avventura – My MIP Choice

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Life often brings unexpected journeys that change our perspectives and motivations. I never imagined living in Italy and stepping inside the Roman Colosseum that seemed so remote in my high school history textbook and Ridley Scott’s “Gladiator” film; or tasting a salty pistachio gelato for the first time, while watching the Vesuvius volcano in the distance from the waterfront in Naples.

Italy is a feast for the senses, that captivated my heart more than six years ago and didn’t let me leave. It’s a cradle of western culture, elegance and decadent gastronomy that has influenced my worldview, leading me to appreciate the importance of craftsmanship and tradition, as primal values that should be preserved throughout time.

My name is Roberto and I’m a filmmaker and new media artist from Colombia. Together with my wife Agustina who is a designer, we lived the dramatic transformation of Milan, the city we call our home. Since the World Expo in 2015, Milan has gained momentum, positioning itself as a vibrant cultural destination and market, apart from being already the financial and industrial hub of Italy.

Thanks to various collaborations in the field of applied arts, I became aware of the fact that there is a vast unexploited potential to develop alternative ventures in the fields of art and design. For this reason, I decided to pursue an MBA to access the information and skills they don’t teach you in art school.

I chose the International MBA program at MIP, because I believe it values the diversity of its candidates and carries the renowned excellence of the Politecnico di Milano, as a technology research-oriented international institution. During my studies, I aim to be enriched and inspired by an international group of professionals from different disciplines and hope to build networking bridges, to address the potential for collaborations in the media, design and cultural industries. I expect this MBA experience at MIP to aid me to diversify my career path while expanding my horizon as an entrepreneur.

I invite you to join me on my journey through the International MBA program for the next twelve months. An exciting adventure which I’m sure will bring many unexpected surprises and formative experiences, that will transform me in ways I still cannot even imagine and hopefully inspire others to do the same.

Stay tuned for my next chapter after the Kick off week of the International MBA 2018, where I will introduce you to the campus and my first impressions of the program…

 

About the author
 Roberto Niño Betancourt

Roberto is a student of the International full time MBA. He is a Colombian filmmaker and new media artist based in Milan. He has collaborated as a post producer for MTV Latin America, as well as many European production companies. He is very passionate about international cross-cultural collaborations, craftsmanship and the sustainable conservation of natural resources.

 

Thank God I was in Buenos Aires in July 2017

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It’s August 1st. Clearly, July has gone but what will never be gone are the memories from the iFlex face2face week in Buenos Aires from July 24 to 29, 2017.

Let me tell you that our group is very special. We are creative, emotional, academic, serious, ambitious, passionate, friendly, diversified and most importantly we are the “first” international iFlex group.
So we will always be special in the beautiful pages of history and beyond.

When I enrolled in the iFlex program, I was not sure what to expect. I was probably thinking this is just another distant learning program where I will learn remotely and that is that.
Do you know what? I was wrong. It is not distance learning but the experience of a lifetime. Something that enriches you and makes you grow not just academically but also socially. I met around 35 people from different households, backgrounds and lifestyles (either social or professional).

I am a Pakistani residing in Dubai and going to Buenos Aires is almost like going to a neighbourhood near the moon. People who come from my area do not tend to visit Latin America, as it is a world unexplored and very far away (you are looking at a flight of 32 hours with connection/transit time).

Arriving in BA was refreshing. Meeting your colleagues again after almost 9 months was an experience on its own. People who have been working with you via digital platforms like Skype are now in front of you to laugh, cheer and share a meal. It is something one cannot express in words.

If I had to give a name to my Buenos Aires experience I would call it “Education with Social Motivation”. No matter which business you are in and no matter what you do, your whole ecosystem of life is based around one thing – “it is all about people.” The more time you spend with different people, the richer you get.

So the Education with Social Motivation continued and we were warmly welcomed by our Director, Professor Riccardo Mangiaracina. We first spent two amazing days learning about cultural diversity and how to handle it in the workplace with Professor Raffaella Bossi Fornarini. I must say it was eye-opening for all of us and one cannot miss the motivational session with Alejandro Melamed.

We had a fantastic outing to the IAE business school, which is a truly historical institution. When I went to the Argentinian Embassy in Abu Dhabi to get my visa, I had the pleasure of meeting the Argentinian Ambassador. He was absolutely right when he told me that IAE is a very prestigious institution to visit and one must experience its beauty.

We explored the history of Argentina and, considering the economic ups and downs the country has experienced, its development is truly remarkable. It was a memorable day at one of the most prestigious institutions in Latin America.

As the week continued, we studied soft skills in-depth. We also learned a lot of management techniques like time management, public speaking, active listening and critical thinking skills from the one and only Mr Filippo Passerini, who conducted the training like a legend. We also did some fantastic role-play activities that taught us leadership skills and management techniques.

As we all know, we are living in an era of IT and Digital revolution and a visit to Digital House (the coding school) endorsed just that. It was a fantastic experience, where we learnt about how a group of passionate people had built such an awesome facility with the support of IT and Digital industry giants in Argentina such as Mercado Libre.

No group activity is complete without some informal interaction and we had our share of outings, dinners and parties throughout the week, which made it a perfect combination of academic and social activities.

I really hope that my colleagues feel the same about my expressions and remarks in this article and I wish them all the best.

With love,
Ammar Akhtar