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MBA Review Magazine:
Understanding Financial Engineering
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Financial engineering studies train the individual 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.

 
 
 

The field of finance refers to the concepts of time, money and risk and how they are interrelated. Banks are the main facilitators of funding through the provision of credit, although private equity, mutual funds, hedge funds and other organizations have become important. Financial assets known as investments are managed with careful attention to financial risk management in order to control financial risk. Financial instruments allow many forms of securitized assets to be traded on securities exchanges such as stock exchanges, including debt such as bonds as well as equity in publicly-traded corporations.

Financial engineering is a cross-disciplinary field which relies on mathematical finance, numerical methods and computer simulations to make trading, hedging and investment decisions as well as facilitating the risk management of those decisions. Utilizing various methods, practitioners of financial engineering aim at precisely determining the financial risks that certain financial instruments create.

 
 
 
 

MBA Review Magazine, Financial Engineering, Quantitative Methods, Financial Management, Engineering Methodologies, Financial Risk Management, Finance Firms, Finance Operations, Financial Mathematics, Computational Finance, Product Development, Financial Markets, Credit-Risk Modeling, Mortgage-Backed Securities, Global Economy.