Financial engineering is the process that seeks to improve existing financial instruments, tools and structures
and to develop new ones so as to enable financial market participants to cope more effectively with the changing world in which we live. It attempts to be innovative and to offer new methods with which all the people who could be affected by global changes and developments may adapt themselves to the new circumstances.

Financial engineering involves the design, development and implementation of innovative financial instruments and processes, and the formulation of creative solutions to problems in finance. The spirit of financial innovation adequately explains the process of financial engineering and its rich harvest over the past two
decades has long been overdue.

Financial engineering seeks to find new ways of financial control and planning. It develops new mechanisms to deal with global financial fluctuations and to reduce their adverse effects on organizations, and take advantage of the opportunities. Corporate finance, investment, commercial banking, or investment banking, may all be considered as recent innovations which financial engineering covers.

One of the most important attributes of a professional in any industry is to accept the responsibility of not only
contributing to the expansion and further development of the techniques and the storehouse of knowledge for that profession but also to communicate knowledge, skills and techniques to both colleagues and individuals entering the field.

The extremely diverse nature of financial engineering, the rapid pace of change and the many new developments, as well as the day to day pressures of business make it virtually impossible for any professional
to accomplish a task without research and preparation of useful notes that others wishing to be professionals may benefit from. Those of us who are actively involved as practicing financial innovators, should in fact be financial engineers.

This means that we need the design and development of new derivative securities and the applications of these ideas to fund-raising problems for major companies, governments, and supra-national agencies. The term financial engineering first appeared in Japanese finance literature, late 1980s. It was, from then on, used more
and more frequently in both academic and trade publications.

The rapidity with which corporate finance, bank finance, etc have changed in recent years has given birth to a new discipline that has come to be known as financial engineering. As with most disciplines in their early
stages of development, the field of financial engineering has attracted people with an assortment of backgrounds and perspectives.

Financial engineering in Japanese is: Zeitech