Montana State University

Financial Engineering



NEW for Fall 2014!  
We are pleased to announce a new program starting Fall 2014 -- Financial Engineering.  

Financial engineering is an emerging interdisciplinary field that emphasizes the design, analysis and testing of financial instruments to manage risk, create strategic business opportunities, lower costs, and access new markets. Financial engineers apply economics and engineering problem-solving to risk management, an increasingly important business function in today’s highly leveraged, global  environment. Successful market, credit, and production risk management requires complex financial economic modeling and analysis skills.

Financial Institutions 310

The objective of the program is to provide students with the necessary tools to assess and manage a business’s financial risks.  In keeping with this objective, financial engineering majors undertake rigorous training in economics, engineering mathematics, and actuarial methods. Specifically, the program combines:
  • The mathematics and analytical core from Industrial and Management Systems Engineering,
  • Economics with a solid background in classical economic theory and markets (capital, commodity, and derivative), and
  • Software engineering and modeling.

Financial engineers are commonly employed in banking, corporate finance, securities, insurance, manufacturing, agricultural businesses, and other industries that require sophisticated financial management skills. To remain competitive, regional industries as well as national and international firms will employ financial engineers because of the increased complexity and sophistication of business risk management. Due to their rigorous training, the demand for financial engineering graduates is high with a forecasted growth rate of 18 to 20% annually over the next seven years, according to the Occupational Outlook Handbook.

This new program is offered jointly by the Department of Mechanical and Industrial Engineering and the Department of Agricultural Economics and Economics.   The program consists of a major and minor in Financial Engineering.  For course requirements, please see the course catalog by following the links below:

Bachelor of Science in Financial Engineering
Financial Engineering minor (non-teaching)

For more information, please contact one of the Financial Engineering advisors below:

Durward K. Sobek II, Ph.D.
Professor
Department of Mechanical and Industrial Engineering
220 Roberts Hall
(406) 994-2203
email: dsobek@ie.montana.edu
Myles Watts, Ph.D.
Professor
Department of Agricultural Economics and Economics
104 Linfield Hall
(406) 994-3701
email: mwatts@montana.edu