In some countries financial engineering is known as computational finance and the graduates “quants", a term that refers to their quantitative skills. It is rare course in Kenya because currently it is offered in only one university having been introduced a few years back. It is biased towards the finance sector. It is a multidisciplinary field involving financial theory, the methods of engineering, the tools of mathematics and the practice of programming.
One will use complex mathematical formulas needed to make good investment decisions. Such terms as derivatives, investment portfolios, mutual funds, etc are likely to be taught in the course. Computer science and programming especially C++ programming language, are key knowledge areas used to make complex decisions. Mathematical tools such as probability, linear algebra, calculus, statistical inference e.t.c are also a fundamental part of the course.
Financial engineering is normally applied in the securities and banking industries. It is also used by quantitative analysts in consulting firms or in general manufacturing and service firms, in corporate treasury, corporate finance and risk management roles.
Since financial engineering is the application of science-based mathematical models to decisions about saving, investing, borrowing, lending, and managing risk, potential areas where graduates usually get employed include:-
- Management consulting firms
- Insurance firms e.g Kenya-Re and UAP insurance firms
- Banks
- Financial risk management and Securities trading
- Mutual fund companies e.g Old Mutual
- Investment portfolio companies
- Pension and retirement benefits firms e.g NSSF
- Asset finance and management companies
- Investment banking and other related professional management firms
These areas are by no means an exhaustive listing. It is just provided in hopes of giving initial insight into the careers of a graduate of this course.
The finance industry is a rewarding field and has some of the highest paying jobs in comparison to other industries especially at the senior management level. It is however very volatile.
0 comments:
Post a Comment