Management of risk is a necessity in today’s highly leveraged, highly competitive, global economy. Using advanced quantitative methods and path-breaking concepts of strategic planning, financial engineering has emerged as a new and specialized discipline. Financial engineering focuses on designing, evaluating, and managing financial products and using real options to support strategic objectives. This intensive degree program prepares graduates for careers in a broad range of specialties including asset management, investment banking, corporate finance, and consulting. 

Admission Requirements

An applicant to the program should have a strong quantitative undergraduate background, and preferably some experience in using mathematical software. Some background in business or economics is desirable. An undergraduate degree in mathematics, physical science, engineering, or economics is an advantage. Each student will acquire advanced quantitative and managerial tools in the course of the program.

An applicant must submit a completed application, application fee, transcripts of all undergraduate and graduate work completed, three letters of reference, résumé, personal statement, and GMAT or GRE scores as indicated in the Admission  section of the Bulletin.  Students whose first language is not English must submit TOEFL test scores. The admissions committee reviews applicants for clear indications of analytical and leadership ability, particularly in quantitative work.

Quantitative Background Criteria. Applicants are expected to have completed Calculus I, Calculus II, Calculus III, (multivariate calculus), and Linear Algebra with a grade of B or better. 

Degree Requirements

The program requires 48 units, or 12 four-unit courses.  Course expectations are distributed as follows. 

Five required courses in mathematics

• Probability
• Statistics or Financial Time Series
• Stochastic Processes
• Mathematical Finance
• Quantitative Risk Management or Optimal Portfolio Theory

Four required courses in management

• Introduction to Risk Management
• Financial Accounting
• Corporate Finance
• Asset Management Practicum
• Derivatives

Three approved courses in Mathematics, Management, or Economics selected from the list of approved elective courses 

University Policies.  University policies detailed in the Registration and Degree Information  section of the Bulletin apply.

Additional Requirements and Policies

The program can be completed in three semesters but many students choose to spread the degree over four semesters. The program can also be completed on a part-time basis and students may elect to switch between full-time and part-time. Students seeking to complete the program on a part time basis are advised to plan their schedules carefully since most courses are offered during the day.

Students with sufficiently strong mathematical background may request a waiver of one or more required courses. Management courses may be waived on the same basis. Students may, with the agreement of a faculty sponsor, elect to do an internship for up to 4 units of credit, which would be counted as a management elective.

Students must maintain an average grade of B (3.0) or better in the 48 units to qualify for the degree. A student whose overall grade point average falls below 3.0 and who does not make satisfactory progress toward completion of the degree may be dismissed from the program by faculty at any time during the course of study. 

Field Study in Financial Engineering

An integral component of the financial engineering degree is an internship opportunity that allows candidates to examine specific applications of derivative instruments and risk management in a business environment. Depending upon student and sponsor needs, internships can be structured on a full- or part-time basis. The internship is not a requirement, but is optional and may be taken for academic credit toward the management electives requirement.