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MARYLAND HIGHER EDUCATION COMMMISSION
ACADEMIC PROGRAM PROPOSAL
PROPOSAL FOR:
,/ NEW INSTRUCTIONAL PROGRAM
__ SUBSTANTIAL EXPANSION/MAJOR MODIFICATION (for online delivery) COOPERATIVE DEGREE PROGRAM ____..:{___ WITIDN EXISTING RESOURCES or __ REQUIRING NEW RESOURCES
(For each proposed program, attach a separate cover page. For example, two cover pages would accompany a proposal for a degree program and a certificate program.)
Johns Hopkins University Institution Submitting Proposal
Spring 2016 Projected Implementation Date
Post-Baccalaureate Certificate Financial Risk Management
Award to be Offered (^) Title of Proposed Program 1703-04 27. Suggested REGIS Code (^) Suggested CIP Code
Financial Mathematics^ T.E.^ Schlesinger, Dean Department of Proposed Program (^) Name of Department Head
Philip Tang [email protected] 41 0-516- Contact Name Contact E-Mail Address Contact Phone Number
Signature and Date
12/15/2015 (^) President/ChiefExecutive Approval
12/1/2015 (^) Date Endorsed/Approved by Governing Board Date
The Johns Hopkins University
Whiting School of Engineering
Proposal for New Academic Program
Post-Baccalaureate Certificate in Financial Risk Management
A. Centrality to institutional mission statement and planning priorities
1. Program description and alignment with mission
The Johns Hopkins University Whiting School of Engineering proposes to launch a new Post-Baccalaureate Certificate in Financial Risk Management building on the existing and previously endorsed Master of Science in Engineering in Financial Mathematics (REGIS: 170302; CIP: 270301), which is designed for full-time resident students. The newly proposed program would be delivered online and is intended for part-time students.
Financial Mathematics, also referred to as Financial Engineering, is a relatively new discipline, rooted in modern economic thought yet steeped in the classical intellectual disciplines of mathematical analysis, chance and uncertainty. Tracing its origins to the early 1970s and to the introduction of the personal computer, financial engineering's early achievements include the development of structured mortgage-backed securities (now the biggest bond market) and a rationale for option pricing- the consequences of which are ubiquitous in modern investing and financial markets.
The mission of The Johns Hopkins University is to educate its students and cultivate their capacity for life-long learning, to foster independent and original research, and to bring the benefits of discovery to the world. The proposed program is consistent with the Johns Hopkins mission and the State of Maryland's goals for maintaining and strengthening a preeminent statewide array of postsecondary institutions recognized nationally for academic excellence and effectiveness in fulfilling the educational needs of students, the State and the nation; and for promoting economic growth and vitality through the advancement of research and the development of a highly qualified workforce.
The proposed certificate program is part of the JHU Whiting School of Engineering's Engineering for Professionals (JHU-EP) division, which seeks to serve the part-time graduate degree program needs of the working engineering and science professionals in the central Maryland region and beyond.
The Post-Baccalaureate Cetiificate in Financial Risk Management program will prepare students to enter leadership positions in the financial industry and government where they will use their financial mathematics knowledge, skills, and creativity to provide
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provide students with the educational background to pursue increasingly responsible management roles in the financial industry and government.
B. Adequacy of curriculum design and delivery to related learning outcomes
1. Program outline and requirements
A full course listing (with course titles and descriptions) is provided in Appendix A. All courses are three (3) credits.
Applicants for the Post-Baccalaureate Certificate in Financial Risk Management must have:
- An undergraduate or graduate degree in a quantitative discipline from a regionally accredited college or university and at least two years of experience in finance or a related field
Applicants must show competency (through their undergraduate transcripts) in the following areas:
- Calculus, through multivariable calculus
- Linear algebra
- Differential equations
- Probability and Statistics
- Competency (^) in computer programming must be demonstrated through coursework (including MOOC course completion with verification) or work expenence
The admissions committee will evaluate the prospective student's academic and professional record.
In order to earn a Post-Baccalaureate Certificate in Financial Risk Management, five courses (15 credits) from the MS in Financial Mathematics must be completed. No more than one course (3 credits) with a grade of C, and no course with a grade lower than C, may be counted towards the degree. The following summarizes these requirements and notes specific courses (described in Appendix A).
2. Educational objectives and student learning outcomes
The educational objective of the Post-Baccalaureate Certificate in Financial Risk Management program is to equip graduates with the engineering-driven approaches widely used to measure and manage financial risk for enterprises engaged in the international financial system and the capital markers. This utilizes mechanisms which enable the creation/employment of wealth and the worldwide distribution of well-being within the constraints and intent of global financial policy.
Graduates will be prepared to enter risk-management leadership positions in the financial industry and government where they will use their quantitative skills and creativity to provide innovative solutions and develop new or improved approaches to financial risk.
3. General education requirements
Not applicable.
4. Specialized accreditation/certification requirements
Not applicable.
5. Contractual agreements with other institutions
Not applicable.
C. Critical and compelling regional or statewide need as identified in the State Plan:
1. Demand and need for program
The Whiting School of Engineering has offered graduate degree programs that address both technical expertise and leadership skills for many years. The JHU-EP Program has offered the Master of Science in Technical Management since 1981. In 1991 the JHU-EP began offering a Master of Science in Systems Engineering to meet the demand from local Maryland companies and the federal government. While demand is still strong for both of those degree programs on the part ofboth students and employers, we have observed an increasing interest in a graduate degree program that addresses the particular needs of the financial industry. Other universities have also noticed this trend. The proposed Post-Baccalaureate Certificate in Financial Risk Management program is a response to the demand from potential students and their employers for this kind of degree program.
For busy working professionals, flexibility is very important in enabling them to continue their education in the face of work demands. The online option for this program will create scheduling flexibility. They will also accommodate students who must suspend their studies due to temporary military deployment or relocation by their employer.
2. Educational and training needs in the region
Professionals practicing financial mathematics are found at every financial services institution. Such firms include banks, whereby M&T and Bank One are but two major institutions with major installations in Maryland and the mid-Atlantic region (all firms mentioned in this section include only firms contacted about the proposed program); investment management firms, such as T. Rowe Price and Legg Mason; investment banks, such as Stifel and Bank of America Merrill Lynch. There are other industrial enterprises where interactions with markets (financial or otherwise) require highly skilled financial mathematics professionals, these being vital to their competitiveness (for example Consolidated Energy- trading in the global energy markets to ensure the best for Maryland). Additionally, graduates will be in demand by government entities (and governmental supra-agencies) such as at the Federal Reserve, the Government Sponsored mortgage Enterprises such as FNMA & FHLMC, the U.S. Treasury, the Social Security Administration, the World Bank, etc. If we were to include the burgeoning financial center in Wilmington, DE, such firms as J.P. Morgan Chase, Bank of America, ING, as well as Bloomberg, LLC, could be included in our list.
3. Prospective graduates
The residence program in the Whiting School of Engineering on the Homewood campus currently receives 500 applicants each academic year, accepts 25 to 30 students, and graduates the same number, annually. All these students are quickly placed in jobs, usually before graduation. A few stay in the Maryland area, but many go on to the financial centers in New York, London, Hong Kong or Mainland China.
There is tremendous demand for these skilled professionals, world-wide, and especially after the credit crisis of2008.
The JHU-EP program is expected to produce a similar number of graduates. The majority of these graduates are not expected until2017 given the normal pace of JHU-EP students in pursuit of their program, though a few might choose an accelerated pace.
E. Reasonableness of program duplication
1. Similar programs
No other institution in the state of Maryland currently offers a Post-Baccalaureate Certificate in Financial Risk Management or anything similar to the proposal herein.
2. Program justification
The proposed Post-Baccalaureate Certificate in Financial Risk Management program is unique in its online options, its broad range of students, and its accompanying broad set
of courses taught by highly-regarded researchers and practitioners. Students seek out the JHU-EP programs for the high quality and the online, part-time convenience.
F. Relevance to Historically Black Institutions (HBis)
1. Potential impact on implementation or maintenance of high-demand programs at
HBis.
Not applicable. Web searches of the HBis in Maryland did not tum up any offerings like the one proposed here.
2. Potential impact on the uniqueness and institutional identities and missions of HBis.
Not applicable.
G. Evidence of compliance with the Principles of Good Practice
See Appendix B for the evidence that this program complies with the Principles of Good Practice noted above.
The Higher Education Opportunity Act (HEOA) enacted in 2008 requires that an academic institution that offers distance education opportunities to students 1) has a process established to verify that the student who registers is the same student who participates in and completes the offering and receives academic credit for it, 2) has a process established, to verify that student privacy rights are protected, and 3) has a process established that notifies the student at about any additional costs or charges that are associated with verification of student identity. In this graduate program the following actions have been taken to satisfy these requirements: 1) students may only enter the academic website for the online courses they take by providing their unique student ID and password they receive when they are admitted to the programs, 2) all FERPA privacy rights are preserved by limiting access very specifically in the University student infmmation system to only those permitted by law to have access to restricted student information, and 3) there are no additional costs assessed to the student for the measures we use to verify student identity.
H. Adequacy of faculty resources
The Post-Baccalaureate Certificate in Financial Risk Management program engages faculty members from both the existing full-time program in Financial Mathematics as well as those from the part-time JHU-EP Applied and Computational Mathematics program. Each is a distinguished and experienced professional, and many have doctorates in their field of expertise. These faculty members have demonstrated a strong commitment to excellence in teaching. Most are practicing professionals in the financial industry or government, and many hold influential and leadership positions in their organizations. Please see Appendix C for a representative list of faculty who will teach in the program.
K. Adequacy of financial resources with documentation
JHU-EP now has more than 10 years of experience developing and offering online courses. Based on that experience, JHU-EP will be able to sustain the proposed program through tuition generated by offering the courses during fall, spring, and summer terms each year. Details concerning the resources and expenses may be found in Appendix D.
L. Adequacy of provisions for evaluation of program
As part of the program design and approval process, student learning outcomes and assessments have been aligned with both the Whiting School of Engineering's Graduate Committee oversight and to applicable professional standards. Once the Post-Baccalaureate Certificate in Financial Risk Management program is launched, the program and courses will be evaluated using student surveys and program committee reviews on a regular basis. For example, feedback regarding the appropriateness of course content will be solicited from students every time a course is offered. The program committee will meet annually to assess course evaluations and other feedback provided by students, faculty and other stakeholders in the program. Based on these data, the program committee will implement changes to the program (in terms of curriculum content, course delivery mechanisms, etc.) as necessary.
M. Consistency with the State's minority student achievement goals
As discussed above, the JHU-EP program, the Whiting School of Engineering's part-time graduate program already draws students from the entire science and engineering work force in the central Maryland region. The diversity of Johns Hopkins's student body diversity reflects that of the regional work force. Including the online component of this program will also reflect the diversity of the work force on the national scale. This should serve to increase the accessibility of JHU-EP programs to a wider range of students in our diverse communities.
N. Relationship to low productivity programs identified by the Commission
Not applicable.
Appendix A
Course List and Descriptions
All courses listed below are 3 credit hours and are currently offered unless otherwise indicated.
Core courses in financial mathematics
555.442 Investment Science
This is the key introductory course for the financial mathematics program and introduces the major topics of investment finance. The investment universe, its context of markets, and the flow of global capital are introduced. Details of equities, interest, bonds, commodities, forwards, futures, and derivatives are introduced to varying degree. The concepts of deterministic cash flow stream, valuation, term structure theories, risk, and single- and multi-period random cash flows are presented. Here the neoclassical theory of finance is introduced including the topics of efficient markets, the risk-return twins leading to the mean variance Capital Asset Pricing Model (CAPM), the efficient frontier, the intertemporal models, and Arbitrage Pricing Theory (APT). Some introductory models of asset dynamics (including the binomial model), basic options theory, and elements of hedging are also included in this course. (This course is the same as 550.442 offered by the AMS department for the residence MSE in Financial Mathematics.)
625.441 Mathematics of Finance
This course offers a rigorous treatment of the subject of investment as a scientific discipline. Mathematics is employed as the main tool to convey the principles of investment science and their use to make investment calculations for good decision making. Topics covered in the course include the basic theory of interest and its applications to fixed-income securities, cash flow analysis and capital budgeting, mean-variance portfolio theory and the associated capital asset pricing model, utility function theory and risk analysis, derivative securities and basic option theory, and portfolio evaluation.
555.444 Introduction to Financial Derivatives
This is the first of a two-course sequence devoted to the mathematical modeling of securities and the markets in which they are created and exchanged. The basic cash, hybrid, and derivative instruments are reviewed and set in a rigorous mathematical context. This includes equities, bonds, options, forwards, futures, and swaps, as well as their dealer, over-the-counter, and exchange environment. Models of the term structure of interest rates, spot rates and the forward rate curve are treated; derived from cash instruments (e.g., bonds and interest rates like LIB OR) as well as from derivatives (such as Eurodollar futures and swaps). Principles of static, discrete, continuous and dynamic probabilistic models for derivative analysis (including the Weiner process, Ito's Lemma and an introduction to risk-neutral valuation) are applied to develop the binomial tree approach to option valuation, the Black-Scholes-Merton differential equation, and the Black-Scholes formulas for option pricing. (This course is the same as 550.444 offered by the AMS department for the residence MSE in Financial Mathematics.)
continuous probability models, bivariate distributions and covariance, sampling distributions, hypothesis testing, method of moments and maximum likelihood point (MLE) estimation, confidence intervals, contingency tables, analysis of variance (ANOVA), and linear regression modeling.
Appendix 8
Principles of Good Practice (as outlined in COMAR 13802.03.22C)
(a) Curriculum and Instruction
(i) A distance education program shall be established and overseen by qualified
faculty.
This online program will consist of courses drawn from or modeled after the well established on-site programs in Financial Mathematics and Applied & Computational Mathematics. Faculty teaching in these existing programs will also serve as online instructors. Any new instructor recruited to teach online would be required to meet the same qualifications as those teaching in the existing programs.
(ii) A program's curriculum shall be coherent, cohesive, and comparable in
academic rigor to programs offered in traditional instructional formats.
A Program Director with extensive subject matter expertise and practical experience will have oversight of the program curriculum. This individual, who also teaches in the residence program and serves as its Executive Director, will oversee the selection of course instructors and ensure that the academic rigor of the online courses are comparable to traditional instructional formats.
All the courses in the online program are offered in the traditional, site-based program in Financial Mathematics. Prior to a course being converted for online delivery, the course has typically been taught twice in-class. In addition, a formal online course development process is used to support the course conversion from in class to online. The online course development process incorporates the Quality Matters™ research-based set of eight standards for quality online course design to ensure the academic rigor of the online course is comparable or better than the traditionally offered course. We are starting to experiment with straight-to-online developments in the expectation that we will get non-regional faculty to develop courses in the future.
(iii) A program shall result in learning outcomes appropriate to the rigor and
breadth of the program.
The program learning outcomes for the distance education program are identical to the traditional on-site program. The program learning outcomes are derived from input from professionals within the discipline, the program instructors, program leadership and other program stakeholders.
(iv) A program shall provide for appropriate real-time or delayed interaction
between faculty and students.
The online option for the Post-Baccalaureate Certificate in Financial Risk Management will be delivered via Blackboard, JHU's course management system. This platform supports asynchronous interaction between faculty and students. Students and faculty also have the option to participate in optional 'real-time' interaction through weekly web-conference office hours, supported by Adobe Connect.
(v) Faculty members in appropriate disciplines in collaboration with other
institutional personnel shall participate in the design of courses offered through
a distance education program.
The program has established a process for identifying the appropriate faculty to design an online course. All the faculty are selected based on domain expertise, program-related teaching experience and completion of a required online course development training course.
(b) Role and Mission
(i) A distance education program shall be consistent with the institution's mission.
Refer to Section A.l in the main body of the proposaL
(ii) Review and approval processes shall ensure the appropriateness of the
technology being used to meet a program's objectives.
The development of online courses is supported by EP's Center for Learning Design and Technology (CLDT) professional staff, which includes instructional designers, instructional support specialists and other supporting staff. Each online course development is assigned an instructional designer. The course instructor(s) consults with the instructional designer during the course design process to determine the most effective learning technologies and strategies needed to meet the course learning objectives. The course design goes through multiple reviews by the instructional designer and program chairs. The program chairs are responsible for making sure the course design meets the program's expectations for online courses and that the course learning objectives reflect what your program expects students to
technology training, course design support, learning management system training, course production support (i.e. recording studio), video production, and a faculty support help line and email.
(d) An institution shall ensure that appropriate learning resources are available to
students including appropriate and adequate library services and resources.
The students will have online access to the Milton S. Eisenhower Library on the Homewood campus, which is ranked as one of the nation's foremost facilities for research and scholarship. Its collection of more than three million bound volumes, several million microfilms, and more than 13,000 journal subscriptions has been assembled to support the academic efforts of the University. The interlibrary loan department makes the research collection of the nation available to faculty and students. The library also provides easy access to a wide selection of electronic information resources, including the library's online catalog, and numerous electronic abstracting and indexing tools. Many of the databases are accessible remotely. Librarians help students electronically and the library maintains an extensive web site to take visitors through all of its services and materials.
(e) Students and Student Services
(i) A distance education program shall provide students with clear, complete, and
timely information on the curriculum, course and degree requirements, nature
of faculty/student interaction, assumptions about technology competence and
skills, technical equipment requirements, learning management system,
availability of academic support services and financial aid resources, and costs
and payment policies.
JHU-EP maintains numerous web-based resources to inform prospective students on the information they may need as an online student. These resources include: EP main website (http://ep.jhu.edu); EP online catalog, which includes detailed programmatic information, academic support services, financial aid, costs, policies, etc. and specific information for online learning (refer to http://catalog.ep.jhu.edu/content.php?catoid=20&navoid=630). As new online students are admitted and enrolled, they receive timely emails with important information to help them prepare to become an online student. These emails include information on how to create their JHU login account for the course management systems, technical requirements, available academic support services and new online student orientation course.
(ii) Enrolled students shall have reasonable and adequate access to the range of
student services to support their distance education activities.
JHU-EP online students have access to the following academic support services:
- Academic Advising: Students are assigned an advisor when accepted. Students work individually with the advisor to develop a course of study that meets the requirements of the program and the career goals of the student. The advisor regularly contacts the students to check on progress and answer questions. Courses that deviate from the program plan and have not been approved by an adviser may not count toward degree requirements. A degree audit tool is provided so students verify their selections match degree requirements.
- Library Services: Students have online access to the Milton S. Eisenhower Library on the Homewood campus, ranked as one of the nation's foremost facilities for research and scholarship. The interlibrary loan department allows students access to resources at any other university in the nation. The library also provides easy access to a wide selection of electronic information resources, including the library's online catalog, and numerous electronic abstracting and indexing tools. Many of the databases are accessible remotely. Librarians are available to assist students remotely and the library maintains an extensive web site to take visitors through all its services and materials.
- Services for Students with Disabilities: The Johns Hopkins University is committed to making all academic programs, support services, and facilities accessible to qualified individuals. Students with disabilities who require reasonable accommodations can contact the EP Disability Services Administrator.
- Johns Hopkins Student Assistance Program: The Johns Hopkins Student Assistance Program (JHSAP) is a professional counseling service that can assist students with managing problems of daily living. Stress, personal problems, family conflict, and life challenges can affect the academic progress of students. JHSAP focuses on problem solving through short-term counseling. Accessing the service is a simple matter of a phone call to atrange an appointment with a counselor. Online students may call a phone number for consultation and will be directed to the appropriate resource or office. JHSAP services are completely confidential. The program operates under State and Federal confidentiality legislation and is HIP AA compliant.
- Transcript Access: Official transcripts will be mailed upon written request of the student at no charge.
- Student ID JCard: The JCard serves as the student's University identification card. This card is mailed to the home address of every registered student. The JCard acts as the university library card, which enables students to check out books from the Homewood Eisenhower Library or at any of the campus center
The JHU-EP Center for Learning Design & Technology unit's instructional design
and faculty support staff continually participates in professional development
activities to keep abreast of evidence-based approaches to online teaching practices.
These online teaching practices are then incorporated into the new online instructor
training sessions.
(iii) An institution shall provide for assessment and documentation of student
achievement of learning outcomes in a distance education program.
As part of the online course design process, course assessments are required to be
aligned with stated course learning outcomes. The JHU-EP program, where
appropriate, incorporates authentic-based learning assessments that demonstrate
student's application oflearned concepts.
Appendix C
Faculty
Name Highest Degree Field^ Title^ Courses Taught
David Audley PhD Financial Math Senior Lecturer
Intro to Financial Derivatives; Interest Rate & Credit Derivatives; Financial Risk Management; Structured Securitization
James Spall PhD
Applied & Computationa I Math
Research Professor
Stochastic Systems; Stochastic Optimization; Monte Carlo Methods; Investment Science
Beryl Castello PhD Applied Math & Statistics Senior Lecturer^
Linear Optimization; Nonlinear Optimization
Fred Torcaso PhD Applied Math & Statistics Senior Lecturer
Time Series Analysis; Optimization in Finance; Stochastic Processes,
Barry Bodt PhD Mathematical Statistician Lecturer^
Statistical Methods & Data Analysis
Moustapha Pemy PhD
Mathematical Finance & Stochastic Analysis
Associate Professor, Towson University
Mathematics of Finance; Introductory Stochastic Differential Equations with Applications
