A degree in financial engineering opens doors to jobs that demand sharp intuition, strong calculative thinking power, and a steadfast mind under pressure. The umbrella of financial engineering training covers several different but equally critical skills. Some of the special skills include corporate finance, trading, risk management, portfolio management, and derivatives management. The following are some of the common job arrangements chosen by someone with financial engineering credentials.
Resource: 25 Great Master of Financial Engineering Programs 2015
Financial analysis
One of the most common career choices after getting a financial engineering degree is to become a financial analyst. True to the name, a financial analyst is counted on to facilitate proper financial risk management. The financial analyst combines computer solutions with their own intuition to come up with the most well-informed investment strategies.
While the financial analyst will have virtual simulations to help them speculate, most of the investment plans that necessitate their expertise will come with an extremely high risk level. Though the risk may be great, well-trained financial analysts will have the skills to create the smallest margin of error.
While high-risk investments might be dangerous to an untrained individual, financial analysts are able to leverage the high risk of the investment to get substantially large returns and minimize losses. Even with nearly all of the investment capital at risk, top financial analysts are able to consistently provide generous returns for their client companies.
Government work
Financial analyst aren’t limited to working for private companies making high-risk investments. In some cases, a financial analyst may work with the government; specifically, governments that have market economies. When working with the government, the job of the financial analyst will mostly be based in providing consultancy or advisement. Financial analysts can consult or advise governments on a central, state, or local level.
Private practice
In some cases, a financial analyst may start their own private consultancy. As an independent consultant, the financial analyst will take on clients that need their expertise to leverage generous private investments. If a financial analyst builds a strong reputation as an independent consultant, then they may be able to operate with a bit more freedom than those who are strictly partnered with companies or financial institutions. However, it isn’t necessary for independent consultancy and stable work to be mutually exclusive for the financial analyst. Some financial analysts choose to keep their own practice while still reporting to a company or institution for stable employment.
In 1992, financial engineering was formally established by the International Association for Quantitative Finance. Since its establishment, millions of tech-savvy individuals have gone into the field to hone their skills in engineering, programming, mathematical formulation, and all other manner of highly calculative techniques.
No matter how much knowledge a financial engineer may have, it is impossible for anyone to have a completely flawless level of insight into the market’s volatile behavior. Rather than aiming to never make any miscalculation, financial analysts will simply operate to minimize their eventual losses. No matter what kind of jobs a financial engineer may consider, a having a real passion for numbers is just as important as organizational and technical skills.
