Financial Engineering & Management

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Learn about the complexity of financial products or services and assess what risks are involved using mathematical models.

Expanding markets and the increasing complexity and variety of financial products have pushed up demand for skilled professionals capable of creating, pricing and hedging complex derivatives. In the specialisation in Financial Engineering & Management (FEM) you will acquire the mathematical and managerial knowledge needed to fulfil your ambitions in the fascinating field of banking, insurance, pensions and more.

Research orientations

A research orientation represents a scientific research area and determines a part of the mandatory courses you are going to follow and the field in which you will complete your master’s thesis. Within the FEM specialisation, we offer two research orientations: Valuation & Risk Management and Financial Technology. 

What to expect?

Valuation and Risk Management

A key focal point in this specialisation is your ability to identify and quantify risk. The increasing complexity of financial contracts, the growing overlap between providers of financial products, and the emerging markets for new products – such as energy, dairy quotas or emission rights – have raised the need for quantitative risk management instruments. This specialisation will teach you how to analyse and manage financial risks using financial products and modifying business processes. Think, for example, of reengineering business processes, adapting the firm’s strategy, switching customers/suppliers, or making alternative investment decisions.

Financial Technology

A key focus in this specialisation is your ability to understand technology to enhance financial services. The rapid advancement of financial technology, the increasing overlap between financial service providers, and the emergence of new financial products have created a need for tech-driven solutions. This specialisation will teach you how to use technology to improve financial services and processes. You will learn to improve business operations, adjust company strategies, choose the right quantitative tools, and make informed investment decisions using cutting-edge technologies. Courses include Information Systems for the Financial Services Industry, Risk Management, and Reinforcement Learning with Applications.

Examples of courses you follow during this specialisation:
  • In the course Risk Management, you will learn how Collateral Debt Obligations played a crucial role in the big financial crisis of the last decade, while this industry was in fact boosted by regulation to prevent such a crisis.
  • What’s the current unifying principle behind the pricing of a wide variety of options and other financial derivatives – a trillion-dollar industry? You will find out in the course Mathematical Finance.
  • Understand how modern information systems support and transform financial services, enhancing efficiency and security. Apply machine learning techniques and artificial intelligence to understand quantitative, data-driven businesses in the course Information Systems for the Financial Services Industry.

Assessing financial risks involves a lot of mathematics. That’s why some courses in this specialisation are being taught in collaboration with the Master’s in Applied Mathematics. You will also benefit from comprehensive management training and learn to apply strategic skills to manage an organisation’s innovation and technology.

Additionally, you will gain insights into the latest financial technologies and how they can be leveraged to drive business growth. You will develop practical skills in coding reinforcement learning techniques and data analysis, essential for modern financial technology roles. Moreover, you get the opportunity to bring theory into practice, as you work on real-life cases as well. For example, you will complete your master’s assignment in the field, solving an actual problem using the financial technology skills you’ve acquired.

What will you learn?

As a graduate of this Master's and this specialisation, you have acquired specific, scientific knowledge, skills and values, which you can put to good use in your future job.

  • Knowledge

    After completing this Master’s specialisation, you:

    • have a thorough knowledge of financial markets and financial products;
    • have a profound understanding of regulation and risk management in the financial sector;
    • understand game theory as an explanatory factor.
    • have in-depth knowledge of information systems for finance and how they support and transform financial services;
    • understand how reinforcement learning can be applied to financial decision-making and predictive modeling
  • Skills

    After successfully finishing this Master’s specialisation, you:

    • know the principles of microeconomics and you can apply them in price forming and categorisation of markets;
    • can apply pricing techniques for shares, options and structured products (CAPM, Black-Scholes, risk-neutral valuation, martingale measure theory);
    • know how to apply principles of risk modelling, measurement and management (Value at Risk, coherent risk measures, Basel regulation, Solvency regulation).
    • possess advanced skills in leveraging financial technology to innovate and optimize financial services;
    • are proficient in coding reinforcement learning techniques and data analysis, essential for roles in modern financial technology.
  • Value

    After completing this Master’s specialisation, you:

    • have a sharp eye for the limitations of models, even when the mathematics seem impressive;
    • have a solution-oriented mentality, no matter how complex a situation or problem is;
    • are aware of the different backgrounds of stakeholders and take these into account and benefit from them while working together.
    • demonstrate resilience and adaptability in the face of rapidly changing financial environments and technologies.

Other master’s and specialisations

Is this specialisation not exactly what you are looking for? Maybe one of the other specialisations suits you better. It is also possible – and welcomed – to make bridges between specialisations, by adding a second specialisation (within or outside of the Master's in Industrial Engineering & Management). 

Not sure if the Master's in Industrial Engineering & Management is the right choice for you? Find out more about these other Master’s:

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