The relationship between the financial crisis and financial engineering

The essence of the financial crisis is overdraft consumption, overdraft credit caused by the demand decrease, and spread throughout the economy, this economic cycle fluctuations are inevitable, generally there is a small crisis in a few years, and a major crisis in decades.

However, in this round of crisis, the extensive use of financial engineering has made various financial institutions develop a lot of complex financial derivatives, the pricing of these derivatives is relatively complex, many people do not know very well, their application has increased the breadth and depth of the financial crisis, and these derivatives risk control measures are insufficient, difficult to supervise.

So it can be said that financial engineering has increased the timing and scope of the crisis to some extent, but it is not the root cause of the crisis.

Financial engineering is a comprehensive discipline, which was founded by Wall Street financial market workers and scientists in the early 90s of the 20th century, aiming to combine financial theory and engineering practice, and apply modern scientific and technological means to solve various risk management problems faced by the financial market. It emerged as a result of responding to the needs of complex financial markets.

First of all, the cause of financial engineering is the risk management problem caused by moral crisis, information asymmetry and other factors. In the late 80s and early 90s of the 20th century, large-scale financial derivatives trading centers emerged in the capital market and achieved remarkable results, but they also exposed many shortcomings and defects in the financial market, such as adverse selection and moral hazard problems caused by information asymmetry, as well as highly complex pricing and trading strategies of financial derivatives.

Secondly, the reasons for the emergence of financial engineering also include the integrity, efficiency and globalization of financial markets. In the context of globalization, the development of financial markets is becoming more and more perfect, and financial instruments and financial market products are constantly innovating, which requires the development and use of more complex financial engineering techniques to manage various financial risks and improve the efficiency of financial markets.

Finally, the reason for the emergence of financial engineering is also inseparable from the rapid development of computer technology. With the rapid development of computer technology, people can use computer simulation, statistical methods and mathematical modeling to process a large number of complex data and information, so as to better cope with the various risks and challenges in the financial market. These computer technologies have become one of the important tools for financial engineering research, and also provide more reliable and efficient methods for solving problems in financial markets.

The reasons for the emergence of financial engineering are as follows:

Financial engineering is the product of the market's constant pursuit of greater financial efficiency. Financial engineering in a broad sense refers to the development of all technologies that use limb engineering means to solve financial problems, which includes not only financial product design, but also financial product pricing, trading strategy design, financial risk management and other aspects.

Financial engineering is still very good, as long as you study hard, you will definitely be a high-paying talent in the future, but it is still quite difficult to learn. I am a Level 20 financial engineering student at Beibu Gulf University, and I still have a certain understanding of the discipline of financial engineering.

First of all, the discipline of financial engineering is mainly to study the basic knowledge of economics, finance, financial engineering and financial management, receive skills training in financial management, investment and financing, risk management, etc., and mainly use computers to establish mathematical models to solve finance-related problems. For example: the design and development of financial derivatives such as insurance, the risk control and management of investment and wealth management products, and the actuarial calculation of the distribution law of insurance accident losses.

Personal opinion: As I have been in contact with this discipline for two years, I personally think that financial engineering is a more difficult subject, it requires our mathematics and English ability is relatively high, and the bachelor's degree in economics is really winding, it is difficult for ordinary people to understand, but once you learn this major, as long as you learn something, it is still more popular in the society, because the corresponding jobs are biased towards high-tech talents, so the treatment will not be too bad.

So I suggest that if you are aspiring or can still learn a good subject, if you are good at math and English, then you must be right to come to the major of financial engineering.

Let's take a look at the work of the financial engineering counterpart.

Moreover, we have practical training, simulation, etc., to cultivate our practical ability, and we have learned that it is still very valuable, and we have obtained a lot of professional-related certificates, which has opened up a lot of directions for our employment.

First of all, you can do this, our teacher told us that you should learn to pay attention to current affairs and global economic trends, which will help you better study economics courses.

Secondly, you should learn English as soon as possible after you enter university.

Level 4 and 6, don't delay, our major has certain requirements for English, so English should be learned well, and the higher the English ability, it will be good for us to study in the future.

Finally, I suggest that after entering the university, we should go to the library to study, consult various professional materials, and better integrate ourselves into this subject, after all, we have not been exposed to financial things in high school, so in terms of learning, we need to take in it independently to absorb better. That's all for me.

The concept of financial engineering is as follows:

1. The creation of new financial instruments, such as the creation of the first zero-coupon bonds, the first swap contracts, etc.

2. The development and application of existing tools, such as the application of first-class trading to new fields, the development of many options and swaps, etc.

3. Use the existing financial instruments and means to combine and decompose new financial products, such as forward swaps, options, and the construction of new financial structures.

Financial engineering, including the design, development and implementation of innovative financial instruments and instruments, as well as creative solutions to financial problems. There are two types of concepts in financial engineering: narrow and broad. Financial engineering in the narrow sense mainly refers to the use of advanced mathematical and communication tools to carry out different forms of combinatorial decomposition on the basis of various existing basic financial products.

In order to design new financial products that meet the needs of customers and have specific characteristics. Financial engineering in a broad sense refers to the development of all technologies that use engineering means to solve financial problems, which includes not only financial product design, but also financial product pricing, trading strategy design, financial risk management and other aspects. This paper adopts a broad concept of financial engineering.

Career Prospects in Financial Engineering:

The financial engineering major mainly uses computers to implement mathematical models to solve finance-related problems. Therefore, financial engineering is different from MBA and MSP, it is mainly to train technical workers in the financial industry, also known as financial engineers - the positions are mainly concentrated in investment banking, hedging**, commercial banks and financial institutions.

The main work is also very different according to the position, the more representative ones include pricing, model validation, research, develop and risk management, which are respectively responsible for the establishment and application of derivative pricing models, model validation, model research, program development and risk management.

Summary. Kiss, according to your question to make the following, for reference only: the pros and cons of financial engineering in the financial industry have better employment prospects; The employment prospects of the financial engineering major are good, and students can work in financial asset pricing, risk management and investment and wealth management in the corporate sector of **, **, banking and fintech after graduation.

Disadvantages of financial engineering: 1High-level development requires further study; Financial engineering is an emerging major, and the knowledge learned at the undergraduate level is still relatively shallow, if you want to have better development prospects, it is best to take the postgraduate examination or study abroad. The course is more difficult; Financial engineering is an innovative interdisciplinary discipline with high requirements for mathematics and programming, and a certain degree of mathematical analysis ability is conducive to better learning financial engineering.

Let's talk about the disadvantages first.

Kiss, according to your question to make the following, for reference only: the pros and cons of financial engineering in the financial industry have better employment prospects; After graduation, students can engage in financial asset pricing, risk management and investment and financial management in the corporate sector of financial engineering. Disadvantages of financial engineering collapse disadvantages 1

High-level development requires further study; Financial engineering is an emerging major, and the knowledge learned in the undergraduate group annihilation stage is still relatively shallow, if you want to have better development prospects, it is best to take the postgraduate examination or study abroad. The course is more difficult; Financial engineering is an innovative interdisciplinary discipline with high requirements for mathematics and programming, and a certain degree of mathematical analysis ability is conducive to better learning financial engineering.