Financial Engineering
Posted by: admin in: ● March 29, 2010
Financial engineering is a relatively unknown area of management and business education. It is less popular than a conventional MBA, but offers better scope and excellent monetary benefits.
What is financial engineering?
Financial engineering is all about the quantitative aspect of finance. The duty of a financial engineer is to provide the quantitative expertise for banks, assent management and trading firms. A financial engineer can work on risk management including pricing and hedging risks. He/she may also develop new products for the financial services industry, help companies price them or get involved in research on how a particular product works.
Scope
Financial markets need professionals with expertise in quantitative math. Nowadays there is a huge increase in the number of financial products being created. So the demand for financial engineering graduates is on the rise. This sector offers great opportunity for career growth. For instance, a financial engineer dealing with equity asset management can go onto managing the entire equities portfolio of a company.
A degree in financial engineering or an MBA in Finance
A financial engineering program equips students with an in depth understanding of finance. Here the emphasis is on developing analytical skills. Traditional MBA programs, on the other hand, place less emphasis on analytical skills. As a result of this financial engineering students have added analytical skills along with sound financial and practical skills. The course curriculum of a financial engineering program is directly related to finance theory and practice.
Financial Engineering graduates command higher salaries than MBAs. In fact, an MFE (Master of Financial Engineering) degree can be considered a better alternative to a PhD in finance if you are interested in building a technical career in this field rather than making academic pursuits.
