Financial engineering degree programme
If you want to learn advanced skills to become a specialist in stocks, bonds, derivatives and alternative investments, start a dedicated programme and earn your Financial Engineering degree.
The foundations of finance are deeply rooted in mathematics. In order to gain insight and find solutions to complex problems, professionals in the field must have a deep knowledge of mathematical techniques. With the right programme, you can acquire the most advanced skills and become a financial engineer. Financial engineering is the use of advanced mathematical and statistical methods applied to finance (risk management, portfolio structuring, etc.). With the help of specialised professionals, companies can make strategic decisions or create new financial products with less risk and more potential profits.
The importance of financial engineering
The world of finance is challenged by today's world. The globalisation and complexity of financial markets and the increasing digitalisation of the sector are forcing businesses to adapt. To do this, they are hiring financial engineering specialists.
With their skills in mathematics and analysis, financial engineers can collect large amounts of data and make sense out of it.
- Risk management, for example, has never been more important.
The globalisation of the economy has been making all sectors more complex for decades. All financial markets are interconnected, and a crisis in one can quickly spread around the world. In addition, the growing threat of global warming cannot be ignored. Financial engineering enables advanced analyses that provide precise results on which companies can base their strategic investment decisions.
- Financial engineering also enables greater profitability.
Using the most advanced mathematical methods, a specialist can create sophisticated models to predict how a potential investment will perform. These analyses can be used for asset pricing, portfolio management, etc. to help the company maximise its profits. They are also used to design new financial products for banks or insurance companies to sell. With financial engineering come new ways of tailoring these products to the needs of specific investors, helping to retain existing customers.
It is a vast sector with many different roles. With a degree in financial engineering, you will be solving a wide range of financial problems every day.
The future of financial engineering
The future of financial engineering depends on the evolution of digital technologies. As AI and machine learning become more powerful, financial engineers will be able to go beyond what they were doing just a few years ago.
New technologies such as cryptocurrencies or the blockchain are paving the way for innovations such as DeFi (decentralised finance) or smart contracts, which are programmes written into a blockchain that automatically execute an agreement once the requirements are met. Such technologies will change the way corporate finance works.
Financial engineering will also evolve along with risk management. The sector will have to adapt to new risks, the first of which is climate change. Heat waves, large forest fires, hurricanes, etc. are all disasters that will become more frequent and threaten corporate assets. Risk management will become increasingly important and financial engineers will have to adapt.
Finally, industry professionals will have to deal with regulation. Following the 2008 financial crisis, financial engineering has come under greater scrutiny. Moreover, as innovations in FinTech emerge, the law follows suit to regulate them and prevent any form of abuse.
Pursuing a financial engineering programme is the best way to be prepared for all the upcoming changes in the sector. With a relevant degree, you will show recruiters that you are aware of all the challenges the sector is facing and that you have learned how to deal with them.
Career prospects after obtaining a degree in financial engineering
After a programme in financial engineering, you will obtain a degree that opens up many opportunities. It's a specialisation that has applications in many sectors, which is why so many companies are looking for qualified professionals.
With the development of machine learning, AI and so on, it is becoming increasingly important for companies to embrace this change and adapt in order to remain competitive. In addition, as the world changes with globalisation and climate change, companies will need innovative financial solutions based on rigorous analyses. As a result, there is a strong demand for skilled financial engineers.
Upon graduation, you will have access to jobs such as:
- Trader
- Quantitative analyst
- Quant researcher
- Asset manager
- Responsible investment analyst
Key recruiters in Financial Engineering
What skills will you gain from studying financial engineering?
A financial engineering programme is based on advanced skills.
You will develop your analytical skills by learning empirical methods in finance as well as machine learning and research methodology. During the programme, you will also learn advanced skills in finance, such as sustainable finance, climate investing, asset pricing and portfolio management, fixed income and credit, advanced derivatives or risk management.
As financial engineering is a horizontal skill, you will have the opportunity to work for companies in all sectors, even on an international level. To help you progress in your career, you will also learn leadership and management skills.
Why should you pursue a degree in financial engineering at EDHEC Business School?
To study financial engineering and prepare for your career, you should choose a school with one of the best reputations in the world.
With EDHEC Business School, you will learn from top professionals in the sector, in an international context. The quality of our institution is internationally recognised.
According to the Financial Times ranking for 2024, we are one of the top 6 masters in finance in the world and our Master in Management, with its Finance track, is ranked 4th in the world. We also offer the world's best Career Centre to open up new career opportunities.
FAQs of the Master's in Financial Engineering
An MSc in Financial Engineering programme is a postgraduate degree focused on applying mathematical, statistical, and computational techniques to finance. This MSc programme typically covers subjects like risk management, asset pricing, derivatives, machine learning, and financial theory. Graduates are equipped to tackle complex financial problems, build predictive models, and contribute to strategic financial decision-making within businesses, banks, and investment firms.
A financial engineer applies advanced mathematics, statistics, and computer science techniques to solve financial problems. Their work focuses on risk management, asset pricing, portfolio management, and the creation of new financial products. Financial engineers use complex models to predict market outcomes, analyse financial risks, and help companies make data-driven decisions for better financial performance.
Yes, an MSc in financial engineering programme can be highly valuable, especially for those seeking specialised, in-demand roles in finance. The degree equips students with advanced analytical skills and expertise in areas like quantitative finance and risk management. These skills are crucial for positions such as quantitative analyst, asset manager, or risk manager. A financial engineering degree often leads to competitive salaries and growth opportunities, particularly in the finance and tech industries.
A Master’s in Finance and an MSc in Financial Engineering programme differ in focus and skillset. A Master’s in Finance offers a broad understanding of financial management, corporate finance, investment strategies, and market analysis. It often combines quantitative finance with practical business courses, preparing students for roles like financial analyst, investment banker, or corporate finance specialist. EDHEC offers a Master in Management - Finance track, ranked #4 worldwide by the FT 2024, and five Master of Science (MSc) in Finance programmes.
In contrast, an MSc in Financial Engineering programme is highly specialised and mathematics-intensive, concentrating on advanced quantitative techniques, programming, and modelling. This degree focuses on applying mathematical, statistical, and computational methods to solve complex financial problems, such as asset pricing, risk management, and portfolio optimisation. Graduates typically pursue technical roles like quantitative analyst, risk manager, or quantitative researcher, where they develop models to guide strategic financial decisions.
At EDHEC Business School, the MSc in Financial Engineering programme stands out as one of the leading programmes in the field, ranked #6 worldwide by the Financial Times in 2024. EDHEC’s MSc programme is known for its rigorous quantitative curriculum and practical approach, equipping students with top-tier skills and real-world knowledge. With instruction from seasoned industry professionals, EDHEC’s MSc in Financial Engineering programme prepares graduates for high-demand roles in global finance.
Courses of the MSc in Financial engineering programme cover an array of advanced topics, including quantitative finance, derivatives, risk management, portfolio optimisation, machine learning, and computational finance. These courses equip students with the mathematical, statistical, and programming skills necessary for analysing and solving complex financial problems. This knowledge is essential for roles in quantitative analysis, risk management, and financial modeling within the finance industry.
Choosing the best university for a Master’s in financial engineering depends on your career goals, location, and academic interests. EDHEC Business School, for instance, is a leading institution known for its finance expertise and its financial engineering programme. In 2024, EDHEC’s master’s degree in finance (MSc programmes) ranked #6 worldwide by the Financial Times, highlighting its global reputation and industry relevance. With top-tier faculty and a focus on practical experience, EDHEC prepares students with the advanced skills needed to excel in the financial engineering field.
Financial risk refers to the possibility of financial loss due to factors like market volatility, credit defaults, currency fluctuations, and interest rate changes. In financial engineering, understanding and managing financial risk is crucial because it allows professionals to design models that minimize potential losses and optimise returns. Through quantitative techniques, financial engineers assess and mitigate these risks to make more informed investment and business decisions.
Risk management in finance is the process of identifying, assessing, and mitigating potential financial losses due to uncertainties, such as market fluctuations, credit risks, operational failures, and regulatory changes. Financial professionals use various techniques—like statistical modeling, scenario analysis, and hedging—to manage these risks effectively. The goal is to protect assets, ensure stability, and improve decision-making within organizations, ultimately contributing to more resilient financial performance. EDHEC's MSc in Financial Engineering programme includes courses such as Advanced Fixed Income & Credit, Advanced Derivatives, and Quantitative Portfolio Management, which provide essential tools and knowledge for addressing key aspects of risk management.
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