What is Financial Engineering?
Financial Engineering is a multidisciplinary field that requests familiarity with financial theory, the methods of engineering, the tools of mathematics and the practice of programming. Undergraduate and graduate studies in Financial Engineering provide students training in the application of engineering methodologies and quantitative methods to finance. It is designed for students who wish to obtain positions in the securities, banking, and financial management and consulting industries, or as quantitative analysts in corporate treasury and finance departments of general manufacturing and service firms. What is Industrial Engineering? Industrial Engineering is the branch of the engineering profession that is concerned with the design, analysis, and control of production and service operations and systems. Originally, an industrial engineer worked in a manufacturing plant and was involved with the operating efficiency of workers and machines. Today, industrial engineers are more broadl
Financial engineering is a process that utilizes existing financial instruments to create a new and enhanced product of some type. Just about any combination of financial instruments and products can be used in financial engineering. The process may involve a simple union between two products, or make use of several different products to create a new product that provides benefits that none of the other instruments could manage on their own. One excellent example of financial engineering is financial reinsurance. Companies that offer reinsurance options essentially provide a way for the ceding insurer to minimize a drain on available resources when a major shift in premium growth or reduction is taking place. In this scenario, the process of financial engineering helps to create a stable environment that will allow the insurer to remain solvent and stable even when extreme conditions exist. For the consumer, the work of a financial engineer to create new finance product offerings can b
