Financial Engineering: A Risk Management Strategy

this paper examines the relevance of financial engineering .as a risk management strategy in financial management. It is the creation and design of financial securities such as swaps, options, futures and forwards with custom — tailored characteristics, often regarding exposures to various risks. The study, therefore, argued that understanding the key variables of financial engineering with the unpredictable nature of asset prices would at least reduce to the barest minimum volatility of asset prices. This basic factor has led financial experts to proffer engineering solutions to the risks associated with the prices of financial securities