By Owen Lau, Part-Time Lecturer in the Enterprise Risk Management (ERM) Program, School of Professional Studies
Owen Lau teaches Introduction to Finance, a course that introduces key financial statements and fundamental analysis which are critical for financial planning and risk management. Lau has extensive experience analyzing financial statements and interacting with C-suite executives to discuss strategic planning, budgeting, capital allocation, and mergers and acquisitions (M&A).
There is a myth that studying finance is all about memorizing formulas and theories. That is certainly not the case at Columbia University. The School has put a lot of emphasis on communication, and finance courses at Columbia have definitely taken this to the next level.
Wall Street is about understanding company fundamentals, forecasting industry and macro trends, and identifying the next investment opportunities. Our students are trained to meet this challenge.
We ask students to combine current news, deep understanding of company fundamentals, and strong communication skills to articulate the investment opportunities. It is about the application of what they have learned throughout the semester and articulating their ideas in front of a big crowd.
We encourage a dynamic approach, and we usually spend the first 15 minutes talking about current news and events that are relevant to everyday life. Why is it important? It is because when there is a change of situation, there could be opportunities for capital reallocation.
For example, there was a massive focus on inflation and interest rates during the COVID pandemic. We discussed the impact of inflation and how much the Fed could raise interest rates in the next FOMC meeting. More importantly, we dug into how the Fed’s action could impact the economy and specific stocks. Not surprisingly, with higher interest rates, bank stocks performed quite well.
Our conversation with students will evolve. The Fed recently indicated that the interest rate has peaked, so our discussion is no longer about rising rates. Instead it is about when and how much the rate will be cut. Then the question becomes: How will it impact the economy and companies? Which stocks can benefit from this trend? Can housing become more affordable? Will consumers spend more on luxury goods?
Those are the interesting discussions, and training, that will benefit students for many years to come. It is undoubtedly hard for students to be prepared, but to excel in a finance career, those who can master the application of theory and communicate the ideas concisely will have a clear advantage.
About the Program
The Master of Science in Enterprise Risk Management (ERM) program at Columbia University prepares graduates to inform better risk-reward decisions by providing a complete, robust, and integrated picture of both upside and downside volatility across an entire enterprise.
Fall 2025 application deadlines for the M.S. in Enterprise Risk Management program are March 15, 2025, for applicants with international documents, and May 1, 2025, for the final deadline. Learn more here.
