Following the release of the Finance specialization ratings of the QS Global 200 Top Business Schools Report 2010, TopMBA.com asks Professor Steve Thomas, Executive MBA Course Director and a Professor of Finance at Cass Business School, City University London to explain what an MBA specializing in Finance is, and how the top business schools manage to teach it so well...
World-class MBA programs with a finance specialism are structured to focus on integrating finance knowledge with business skills. It is important to have this balance in teaching, as being a master of all things financial is not necessarily enough to be a world-class leader.
However, for prospective students looking to specialize in finance at the end of their MBA, or even for those already in the finance sector who want to take the next step up in their career, choosing a business school which has an MBA finance specialization can be a savvy move.
A substantial advantage to MBAs
Such a specialization can give students looking for the edge in the financial sector a substantial advantage in their job search and career progression.
Business leaders must have a strong grounding in the fundamentals of finance. This is necessary in order to appreciate the generic activities within a financial company and the role of finance in the wider business universe.
During the first part of Cass Business School’s MBA program at City University London, business students study the nature and pricing of financial assets, innovations in financing activities and new financing vehicles. They also consider where these assets sit in the context of their company and the wider financial sector.
The finance sector currently faces much blame for the impact of the global financial crisis on the wider economy, resulting in a torrent of imminent global regulatory initiatives. Therefore an appreciation of the fundamentals of finance and economics is an important tool for today’s business manager as they seek to navigate their company through a period of subdued global activity.
MBA electives in finance
In the second part of the MBA program students have the opportunity to attend finance focussed elective classes which focus on subjects such as developments in private equity and hedge funds, derivative instruments, trading and portfolio management. A key feature of such a course is the widespread involvement of visiting speakers from industry, bringing their extensive practical experience to the classroom.
For example, Cass’ MBA elective in derivatives involves a session on the practical aspects of hedging fuel purchases by international airlines, and is led by one of the most experienced practitioners currently working in the industry. The corporate restructuring elective is taught by a senior visiting fellow who has been both a partner in a global accounting practice and chairman of a major international manufacturing company.
Even those subjects not considered to fall under the finance banner are important to business students considering a career in the finance sector. MBAs need to be exposed to deep reflection on the 'business' aspects of a financial company through subjects such as marketing and strategy which take them away from technical finance and challenge them to think about how a company or sector operates.
Finance education in a changing global economy
Financial companies offer unique challenges to their leaders and senior managers, particularly on subjects as varied as leadership, trust issues and regulatory framework changes. Recent global developments offer unusual and substantial challenges to managers in this sector. Anyone planning to run a business with these additional issues present needs to ensure they are knowledgeable and comfortable with a very wide range of management and professional skills.
For most, if not all prospective students, choosing to study an MBA is an investment in themselves. They want to be the best professional they can be – whatever career direction they take and whatever sector they operate in. It is an intense and challenging course which is only for those professionals committed to grow and develop.
For these reasons, it is important to also focus on personal development skills, presentation skills, coaching, leadership, speed reading and media training. These skills cannot be underestimated and are often the key to career progression. In the post-financial crisis environment we are seeing more than ever that these so-called ‘soft skills’ are crucial for candidates with ambitions to top leadership positions.
The QS Global 200 Business Schools Report identifies the most popular business schools according to MBA employers. TopMBA.com releases ratings for business schools located in each region of the world, as well as the top MBA programs for each of ten specializations.
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