Financial engineering draws on tools from investment banks, commercial banks, hedge funds, insurance companies, corporate treasuries, and regulatory agencies that employ financial engineers. Using financial engineering methods, these businesses try to solve problems relating to new product development, derivative securities valuation, portfolio structuring, risk management, and scenario simulation.
As a financial engineer, you will be working on the trading desk and delivering models, risk calculators, etc directly to traders, or in risk management, model validation, and library control, CVA, or quantitative development and programming.
A career in Financial Engineering: What you’re going to need
A strong background in electrical and/or computer engineering (with a master’s degree, preferably), very strong programming skills (C++, Java, C#, Scala, Python, etc.) and comfort with very large data sets are key. If you are interested in the mathematics of it all, having a PhD is a bonus, although not a necessity.
Successful applicants to Master of Science in Financial Engineering programmes typically have undergraduate degrees in Operations Research, Applied Mathematics, Mathematics, Theoretical Physics, Electrical Engineering, Computer Science or Engineering, and Mechanical Engineering.