Financial engineering is a combination of design, development, and implementation of the innovative financial instruments and processes, a creative pursuit of the recent approaches to resolving financial problems. As well as reducing the risks in order to increase the company's value.
Financial engineering represents a combination of the sciences, including financial management, financial mathematics, applied mathematics, computer science, and information technology.
The main difference between financial engineering and financial management is the emphasis and focus of financial engineering on mathematical analysis. The lack of this tool in the financial management field is noticeable in our country.
1- Utilizing advanced computing and information technology in financial markets and investment analysis;
2- Applying financial engineering techniques to commercial and investment banks, brokers, insurance companies and Treasury units;
3- Financial analysis of industrial and commercial institutions;
4- Utilizing instruments of risk management and risk reduction;