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Specialised MBA programme with application to the financial services industry

During the six residential modules of the programme, participants acquire a firm understanding of the most recent developments in the different management disciplines. At the same time, participants learn to apply the most interesting and relevant management frameworks to their own financial institution. The application of these general concepts to the financial services industry is one of the main competitive strengths of this programme.

Strategic management (back to Top)

Over the different modules, much attention is devoted to developing strategic thinking, which we establish by providing the participants with an overview of the complete strategic scenery. Participants will gain insights into the complex process of strategic management through topics such as:

Marketing management (back to Top)
 

Once the main strategic directions have been agreed upon, it is necessary to develop the headlines for an appropriate marketing strategy. Marketing management is introduced as a concept with a particular emphasis on what it means for a firm to be market-driven. Participants will see that marketing is a continuous process of creating customer value, and learn how customer orientation, production and administration fit into each other. During this course, we deal with the following topics:

Integrated Risk Management (back to Top)

Every firm is confronted with uncertainties about the result of management measures. However, these occurrences are not completely random, chaotic and unpredictable and can therefore be managed. During the week on Integrated Risk Management, participants will gain insights into the major points of entrepreneurial risk assessment, and will be familiarised with the objectives of risk management. We will deal with instruments for implementation of risk management techniques and their possible integration into corporate management.

Holistic or integrated risk management has become a buzz-word in today’s management literature. We will teach which are the prerequisites for a suc­cessful integrated risk management approach. For a clear categorisation of risk perception, we will distinguish three social levels: ‘individual’, ‘company’ and ‘society’. Furthermore, we will see why a division of a company’s processes into social, economic/technical and financial dimensions plays an important role in risk assessment.

Management Accounting and Control (back to Top)

This course introduces participants to the vital role of cost and management accounting in today’s organisations. We will show to what extent management accounting information supports the company’s strategic as well as operational needs. Participants will learn that, in order to achieve the optimal financial policy, a company needs modern management control systems and accurate performance measures. The need for an integrated performance management system as well as the development and implementation of such a system will be a central theme in here.

This course deals with the following topics:

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Global Financial Systems and Financial Instruments (back to Top)

The course on global financial systems and financial instruments is designed to set the stage for the module on Corporate Finance and Financial & Risk Management. Given the forces of globalisation, integration, and innovation, the course examines the structure, conduct, and performance of financial markets from a global perspective. In particular, we focus on the organisational and institutional structure of the global financial markets, their functions, and how these functions contribute to the efficiency of markets.

Also demonstrated is the use of these markets by firms (both financial and non-financial) in their investment, financing, and risk management decisions. We follow up on the distinction between financial intermediaries (banks, insurance firms, mutual funds, pension funds, etc.) and market mediaries (investment banks). We will see how market mediaries design, price, market, and trade many of the innovative instruments that exist today in global financial markets.

Visit to the Shanghai Stock Exchange (China)

Corporate Finance and Financial Risk Management (back to Top)

The module on Corporate Finance and Financial & Risk Management aims to develop a basic understanding of financial issues relevant to the corporate sector. Participants will be able to apply financial theories and concepts to identify key issues and problems in corporate finance. Furthermore, participants will learn to assess the impact of various financial decisions on corporate performance. Issues such as creating an optimal capital structure, outlining a good dividend policy, and taking the right investment decisions will be on the agenda.

Financial and risk management are of crucial importance in managing a financial services organisation. This programme develops the issues top executives face on a daily basis such as liquidity risk, interest rate risk, credit risk, productivity (cost) management, as well as capital management. Each of these areas has critical impact on the profitability of a financial firm and accordingly is central to this course. These major issues are further complicated when financial organisations extend beyond their initial sector. Additionally, banking organisations are in the midst of a paramount shift in the regulatory environment. In this respect, the MBA-FSI will address the challenges posed by Basel II, while highlighting the current practices in managing in the ever-evolving world of financial and risk management.

Operations and Technology Management (back to Top)

In today’s information society, the operations and technology department plays a vital role within the company. In the past few years, IT has shown to play a critical part in optimising the operational efficiency, productivity, innovative capacity and competitiveness of businesses. The course is designed to demonstrate how firms can gain competitive advantage through the use and management of information systems. The focus is on the relationship between information technology, operations, human resources and corporate strategy. Participants will learn of the implications that arise when these aspects are not balanced.

The course will focus on achieving value in financial services firms with information enabled processes, and promoting a systematic approach to long-term productivity improvements. Concepts of productivity cover all dimensions of financial services, from the execution of routine transactions to strategic decision-making by management. We will address why e-process improvement projects don’t always work, and how to mitigate this problem. The scope of the course is therefore very broad, drawing on relevant concepts of service operations management, financial theory, and management information systems.

Human Resources Management and Organisational Behaviour (back to Top)

Current developments in the finance and risk markets demand new strategic responses. Research demonstrates that projects often fail because of inconsistent and sluggish implementation. Change management and organisational development measures are therefore of eminent importance. This is particularly true as the establishment of international financial firms entails the integration of companies with different cultures and identities. New strategic objectives, new target groups, new areas of business, more comprehensive products and services call for new competencies. Instruments and measures to foster a culture of organisational learning and effective knowledge management will secure a competitive edge.

One of the critical success factors is the human resources part of the business. Insurance companies, banks and other financial firms are already witnessing that the competitive struggle in today’s market environment is more and more the result of intellectual rather than capital limitations. The corporate strategy, structure and culture will influence the HRM. It is therefore of utmost importance to dedicate sufficient attention to the development of a strategic and integrated human resources management model for financial firms. Running a global financial firm will entail substantial challenges for this HRM.

Group Dynamics and the Learning Organisation (back to Top)

In this MBA-FSI programme, as well as in daily business life, people need to function in teams next to functioning individually. Taking this into consideration, we organise some sessions developing the so-called “soft skills”. Participants get to know themselves and how they function in groups by means of various personality instruments (MBTI^®, FIRO-B^®), role-plays and other excercises.

Besides this more personal training, we bring some theoretical frameworks and practical tools to evaluate cooperation and group dynamics within an organisation. The learning organisation is a concept that is becoming an increasingly widespread philosophy in modern companies, from the largest multinationals to the smallest ventures. Learning organisations provide the perfect environment for high performing teams to learn, grow and develop. On the other hand these teams will perform efficiently for the organisation to produce positive results. We will teach why learning organisations are successful or not. Furthermore, we will demonstrate how behaviour in learning organisations can create a dynamic platform in which organisational change and performance can be created.

       Teamwork in practice: The Carpet Exercise
 

International management (back to Top)
 

In an ever-internationalising economy, it is of crucial importance to provide participants with the necessary skills to operate in a global and challenging environment. Global firms have to face a higher degree of complexity, uncertainty and unpredictability than firms operating in local markets. Creating and maintaining a competitive advantage poses various challenges. Topics such as cross-cultural management, international financial management, international strategy and organisation will be dealt with throughout the different modules. Multiple visits to major companies in the financial services industry and international guest speakers will help to gain insights into the newest international management developments.

The organisation of modules in countries like China, the US  and Canada fits this goal very well. By spending two weeks in those countries, by attending lectures of local professors and executives, and by visiting a number of local companies, participants will acquire invaluable experiences about the challenges of managing on a global basis.

Course "Doing Business in China"

Introduction to the banking, insurance, and investment industry (back to Top)

In an increasingly converging financial services industry, the boundaries between the different sectors are blurring. As participants of the MBA-FSI come from different firms within the financial industry, it is essential that they acquire insights in all sectors within this industry. Therefore, the MBA-FSI ensures that all participants are introduced into the specificities of the banking, insurance, and investment industry. To achieve this goal, three specifically designed computer simulations have been developed. By focusing these business simulations on specific activities within financial institutions, they assist participants in improving their overall knowledge and management capabilities of these financial organisations. Additionally, they strengthen each participant’s skills in the ability to cope with complex interrelated issues of the real business world.
 

An introduction to the insurance industry with SOFIA^©

Insights into the management of an insurance company will be developed by means of the business simulation SOFIA^©, a game developed by Vlerick Leuven Gent Management School. Participants of SOFIA^© manage an insurance firm in a competitive market. The business game aims to provide players with insights into the complexity and the different aspects of the management of an insurance company.

Participants are placed in various groups of mixed backgrounds, and have to manage their own insurance company. Decisions concern several issues: sales & marketing, product portfolio, distribution, claims & benefits, investments, personnel & organisation, finance & accounting, reinsurance and strategy. Complexity is built up gradually throughout the game. This means that the number of decisions to be taken increases in each round. The different aspects and possibilities of the game are explained in a player manual and there is a covering course tackling the several aspects of insurance. Furthermore, the dynamic team interactions and how to deal with them, are a learning goal in itself.

An introduction to the banking industry with BANKMOD^©

To strengthen the interaction between theory and practice with regard to Financial and Risk Management, the MBA-FSI uses one of the most prominent banking simulations worldwide: BANKMOD^©. Developed by Prof. Dr. André Thibeault (Vlerick Leuven Gent Management School/HEC Montréal), in collaboration with the Institute of Canadian Bankers and Stachanov Consulting, BANKMOD^© contributes to the professional development of executives around the world. The game was originally designed in the mid-1980s and gained immediate acclaim for its ability to simulate the complex environment of top management. Participants of BANKMOD^© manage the financial and risk management concerns of a hypothetical financial institution - in a competitive environment - while strengthening its profitability. In the process of competing among others for deposits, loans, and off-balance sheet activities, each financial institution will have to manage their liquidity risk, credit risk, interest rate risk, productivity (cost) management, as well as capital management. Taken together, the theory component and the BANKMOD^© simulation, participants of the MBA-FSI will not only have a much clearer picture of the financial and risk management concerns of top management, but they will be able to manage in such environments themselves.
 

An introduction to the investment industry
 

The MBA-FSI offers participants an introduction to the securities and investment industry with an overview of its main products and markets. A substantial part of this course discusses the main product types and essential concepts an investment manager has to take into account.

Through MERCVRSIM-INVESTMENTS, a simulation of financial markets and instruments, the course depicts a realistic financial market where asset managers (participants) place major asset allocation decisions in a competitive setting. Developed by Stachanov Consulting, MERCVRSIM-INVESTMENTS uses real market data and real economic conditions to allow participants to experience the challenges of asset management.

Participants are grouped into ‘asset management teams’ with each team managing their own selection of financial assets: equity, bonds, and derivatives. Teams will make decisions regarding the structure of its portfolio within a real economic environment. The ultimate goal is to maximise the Net Asset Value (NAV).

Take home assignments and final project (back to Top)

The combination of learning and working is one of the main features of the MBA-FSI. This feature is also reflected in the pre-course assignments and take home assignments participants are required to complete.

Before the start of most modules, participants are asked to write a short pre-course assignment, in which they reflect upon the topics that will be dealt with during that module. This pre-course assignment will be used as input for group discussions during the module or it can serve as a starting point for the later take home assignment. After each module, an individual take home assignment related to the module theme must be completed. This take home assignment allows participants to apply the theoretical and academic frameworks, learned in each module, to a concrete business setting. These take home assignments provide high value added not only for the participants but also for their companies.

After successful completion of the required course work, participants are required to complete an in-depth research project (final thesis) within their company. This final thesis is largely based on the education they acquired throughout the MBA-FSI.

Depending upon the project theme, a faculty specialist will be nominated as the final thesis coach and supervisor.
 

Examination and evaluation (back to Top)

The overall MBA-FSI grade (100 point scale) is based on the marks obtained for each of the six modules (6 x 10 points = 60 points) and the mark obtained for the individual thesis (40 points).

Module evaluations are unique for each module. However, in general, participants receive marks based on their level of individual participation (activity during the residential periods), the quality of group work and presentations, the quality of pre-course and take home assignments, and the results of the business simulations. After successful completion of the compulsory course work, each participant is required to complete an in-depth research project (final thesis) within his company. The individual thesis is an integral part of the overall MBA-FSI grade as it accounts for 40 percent of the overall mark.

Participants who have successfully completed each of the six residential modules as well as the individual thesis receive an official AMBA-accredited executive MBA-FSI degree at the graduation ceremony.