Difference between Financial Engineering and Financial Management


Financial engineering uses engineering principles to solve financial problems. It also employs mathematics and the theory of finance in addition to computer programming. Financial Management is the management of the finances of a business or an organization in order to achieve financial goals.

Financial engineering course and career opportunities

Candidates who wish to join the course in financial engineering must have finished their gradation. Numerous career opportunities are available for the candidates. Professionals in this field can get employed in fields like banking, securities trading, insurance and engineering consultancies. The salary of the candidates is based on their qualifications and proficiency. Professionals in this field will get as much as Rs 50,000/- - Rs 60,000/- each month in addition to other allowances.

Financial management course and career opportunities

The basic qualification required for the candidates who aspire to join this course is a Bachelors degree in commerce or economics. For admission into the financial management course, the students are required to appear in entrance exams such as Common Admission Test (CAT), Xavier Admission Test (XAT) or Graduate Management Admission Test (GMAT). There are many jobs available for candidates who have completed their course. The highest positions a candidate can obtain within a company is that of a Chief Financial officer or Director of Finance. The initial salary of candidates will be approximately Rs. 10,000- Rs.40, 000 each month. Professionals in the field may earn up to Rs.1.5 Lakhs.

Key differentiators

While the main objective of financial management is to create assets for business, generate cash and provide adequate return on the investments, financial engineering is the method of applying finance, computer modeling skills and mathematics to make pricing, trading and categorize management decisions. Financial engineering can be utilized in  currencies change and pricing options. These comprises of bonds, equity, commodities like gold or oil in addition to derivatives, options and forwards.



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2 Responses to “Difference between Financial Engineering and Financial Management”

  1. 2
    Anuja Vargante:

    can Chartered Accountant Student join course of finance engineering if yes then pls give details of universities outside india

  2. 1
    Youmen Law:

    What is the difference of Bacholor of Finance and finiancial engineering?