Financial Engineering

Financial Engineering is a multidisciplinary field that emphasizes complex modeling and analysis of new financial economic instruments to manage risk, create strategic business opportunities, and access new markets. Especially in today’s highly leveraged domestic markets and fluctuating global business environment, successful management of market, credit, and production risk is essential yet increasingly difficult.  This minor equips students with the basic analytical tools to help a business assess and manage financial risks, and can be used to complement a range of majors. 

The objective of the program is to provide students with the necessary tools to help manage a business’s financial risks.  In keeping with this objective, financial engineering majors undertake rigorous training in financial economics, engineering mathematics, and actuarial methods:

  • Mathematics similar to engineering but expanded to include more statistics and probability theory
  • Financial economics with a solid background in classical economic theory and markets (capital, commodity, and derivative)
  • Software engineering and modeling

The financial engineering minor is a joint program of the Department of Mechanical and Industrial Engineering and the Department of Agricultural Economics and Economics.

Undergraduate Programs

The Bachelor of Science in Financial Engineering (FE) is a multidisciplinary major that emphasizes data analytics and the creation of new financial economic instruments as well as the combining of existing instruments to manage risk, create strategic business opportunities, lower costs, and access new markets. Risk management is essential in today’s highly leveraged domestic markets as well as the global business environment. Successful market, credit, and production risk management requires complex financial economic modeling and analysis.

The objective of the program is to provide students with the necessary tools to help manage a business’s financial risks.  In keeping with this objective, financial engineering majors undertake rigorous training in financial economics, engineering mathematics, and actuarial methods:

  • Mathematics similar to engineering but expanded to include more statistics and probability theory
  • Financial economics with a solid background in classical economic theory and markets (capital, commodity, and derivative)
  • Software engineering and modeling

Financial engineers are commonly employed in banking, corporate finance, securities, insurance, manufacturing, agricultural businesses, and other industries that require sophisticated analysis 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 9% annually over the next seven years, according to the Occupational Outlook Handbook.

The financial engineering major is a joint program of the Department of Mechanical and Industrial Engineering and the Department of Agricultural Economics and Economics.

Freshman YearCredits
FallSpring
M 171Q - Calculus I4  
CSCI 127 - Joy and Beauty of Data4  
Choose one of the following:3  
CLS 101US - Knowledge and Community
COMX 111US - Introduction to Public Speaking
WRIT 101W - College Writing I**3  
EFIN 101 - Introduction to Financial Engineering  1
ECNS 251IS - Honors Economics*  4
M 172 - Calculus II  4
PHSX 220 - Physics I with Calculus  4
General Electives  2
Year Total: 14 15
Sophomore YearCredits
FallSpring
ECNS 313 - Money and Banking3  
M 273 - Multivariable Calculus4  
Choose one of the following:3  
ECNS 345 - Econ Org, Finance & Credit
EGEN 325 - Engineering Economic Analysis
University Core Elective3  
General Electives3  
ECNS 301 - Intermediate Micro with Calc  3
M 221 - Introduction to Linear Algebra  3
University Core Electives  6
General Electives  3
Year Total: 16 15
Junior YearCredits
FallSpring
EIND 354 - Engineering Probability and Statistics I3  
EIND 364 - Principles of Operations Research I3  
EIND 300 - Engineering Management & Ethics3  
Professional Elective3  
General Electives3  
EFIN 301 - Engineering & Economic Financial Management I  3
Choose one of the following:  3
ECNS 403R - Intro to Econometrics
EIND 457 - Regres & Multivar Analysis
EIND 464 - Prin of Operations Research II  3
EIND 373 - Production Inventory Cost Analysis  3
Technical Elective  3
Year Total: 15 15
Senior YearCredits
FallSpring
EFIN 401 - Engineering & Economic Financial Management II3  
ECNS 461 - Financial Econometrics3  
EIND 468 - Managerial Forecasting & Decision Analysis3  
ECNS 460 - Advanced Data Analytics in Economics3  
Technical Elective3  
EFIN 499R - Financial Engineering Design Capstone  3
Professional Electives  6
Technical Elective  3
University Core Elective  3
Year Total: 15 15
Total Program Credits: 120
*

May substitute ECNS 202 Principles of Macroeconomics and ECNS 204IS Microeconomics

**

 Students exempt from the MSU writing requirement must still take a college-level writing course.  Pre-approved substitutions are WRIT 201, WRIT 221HONR 201US, HONR 202IH if not used to satisfy another requirement.

Professional Electives

AGBE 321Economics of Agricultural Marketing3
AGBE 421Advanced Agricultural Marketing3
AGBE 445Agribusiness Management3
BFIN 420RInvestments3
BFIN 435Corporate Finance3
BFIN 452International Finance3
BFIN 456Entrepreneurial Finance3
BFIN 458Commercial Bank Management3
BFIN 460Derivative Securities and Risk Management3
BFIN 491Special Topics3
BGEN 361Principles of Business Law3
BMGT 405Supply Chain Analytics3
ECNS 303Intermediate Macro with Calc3
ECNS 310Health Economics3
ECNS 312Labor Economics3
ECNS 314International Economics3
ECNS 316Economics of Crime and Risky Behaviors3
ECNS 317Economic Development3
ECNS 320Public Finance3
ECNS 332Econ of Natural Resources3
ECNS 403RIntro to Econometrics3
ECNS 432REconomic Policy Evaluation3
ECNS 451Behavioral & Experimental Economics3
ECNS 490RUndergraduate Research1-3
ECNS 492Independent Study1-3
EFIN 498Internship1-3
EGEN 310RMultidisciplinary Engineering Design3
EGEN 492Independent Study1-3
EIND 425Technology Entrepreneurship3
EIND 434Project Management for Engineers3
Note: May substitute EIND 373 and ECNS 345 for BFIN 322 prerequisite, and substitute ECNS 313 for BFIN 357 prerequisite. May not double count ECNS 403R as PE and to satisfy EIND 457 substitution.

Technical Electives

CSCI 347Data Mining3
CSCI 440Database Systems3
CSCI 446Artificial Intelligence3
CSCI 447Machine Learning3
ECNS 309Managerial Economics3
ECNS 401Microeconomic Theory3
ECNS 502Macroeconomic Theory3
ECNS 561Econometrics I3
ECNS 562Econometrics II3
EIND 422Introduction to Simulation3
EIND 455Design of Experiments for Engineers3
EIND 458Production & Engineering Mgmt3
EIND 477Applied Statistical Quality Control3
ESOF 322Software Engineering3
ESOF 422Advanced Software Engineering: Cybersecurity Practices3
ESOF 522Empirical Software Engr3
M 274Introduction to Differential Equation4
M 441Numerical Linear Algebra & Optimization3
STAT 408Statistical Computing and Graphical Analysis3
STAT 421Probability Theory3

A minimum of 120 credits is required for graduation; 42 of these credits must be in courses numbered 300 or above.