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An online doctorate in financial engineering offers students the unique opportunity to combine financial theory, applied mathematics and computer science into a fast-growing interdisciplinary degree. Financial engineering is closely tied with quantitative finance and financial mathematics, although it presents a unique niche in the field. Due to the added experience of computer programming and science, graduates of an online PhD in financial engineering can pursue lucrative career paths in risk management, investment banking and the financial management industries. In addition, as an online doctoral program can be completed outside of standard employment hours, a student may continue obtaining work experience and advancement, giving them an additional advantage when pursuing employment.

Online PhD in Financial Engineering Requirements

Candidates pursuing an online doctorate in financial engineering can expect rigorous coursework. Successful students must have motivation, focus and a background in finance, applied mathematics and computer science. An online PhD program in financial engineering coursework assumes students have had previous experience in the discipline and most candidates apply to the program with a Master degree in hand.

Candidates for an online doctoral program in financial engineering typically have one of the following Master degrees:

• Master of Science in Computer Science
• Master of Science in Financial Engineering
• Master of Science in Quantitative Finance
• Master of Science in Financial Mathematics
• Master of Science in Applied Mathematics
• Master of Science in Economics
• MBA in Economics
• MBA in Finance

In addition, students may have prior experience in financial engineering as computer programmers, financial managers or investment bankers.

Online PhD in Financial Engineering Education

Online PhD programs in financial engineering take 4-5 years to complete. During the course, students have hands-on project experience, take advanced finance, computer science and mathematics courses and submit a lengthy dissertation or extensive project.

Information on Financial Engineering Courses

Some common courses found in a financial engineering program are:

• Financial Engineering I and II
  These courses focus on modern theory and techniques in the following areas: financial instruments, pricing options, managing financial risks, applications for assets and complex trading strategies.
• Advanced Corporate Finance
  Topics in Advanced Corporate Finance range from capital structure, mergers, acquisitions and buyouts, venture capital and pensions. The focus of this course is hands-on, applied case studies.
• International Finance
  This course examines aspects of international corporate finance, including exchange rate risk management, hedging in foreign markets and competitive strategy in a global environment.
• Mergers and Acquisitions
  The objective in this course is to give candidates experience in valuing firms. The primary focus is mergers and acquisitions, although students will also study initial public offerings, buyouts and divestitures.
• Economic Statistics
  This course covers statistical interference in detail, using electronic data acquisition and computer modeling. Prior experience with statistics is required.
• Advanced Computer Applications
  Students are introduced to some commonly used risk management and data structures and their applications using C++. Topics include abstract data types, object-oriented programming, stacks, queues, linked lists, sorting, binary search trees, heaps, and hashing. Prerequisite programming courses are required.
• Applications Programming for Financial Models
  Options pricing and risk management are essential tools for a financial engineer. This course demonstrates techniques in implementation of computation-intensive option pricing models in evolving programming architectures.

Specializations and Concentrations

While a top PhD program in financial engineering provides a path into a niche market, there are several specializations on which candidates may focus their studies during their independent research and dissertation.

Some common concentrations in an online doctoral program in financial engineering include:

• Data Analysis
• Strategic Operations
• Systems Engineering
• Applied Operations
• Applied Probability
• Risk Management-Actuarial

Careers in Financial Engineering

Graduates who earn an online doctorate in financial engineering from an accredited institution enjoy a variety of employers seeking candidates with their unique skill set. Some common careers opportunities for graduates of the best online doctoral programs in financial engineering include:

• Investment Trader
  Investment traders with a financial engineering degree are held in high esteem within investors for their extensive knowledge of trading systems, financial management and data analysis. Traders work for corporations and smaller banks or investment firms, and must have the knowledge and skills to make extremely quick decisions to increase profitability to the client. Investment traders earn an average of $118,000 per year.
• Risk Management
  Risk managers oversee programs to minimize risks and losses that might arise from financial transactions and business operations at investment firms, banks and consultant firms. Risk managers control financial risk by using hedging and other techniques to limit a company’s exposure to damaging change. Risk managers earn between $73,530 and $138,010 per year.
• Computer Programming
  Computer programmers convert project specifications into detailed logical flow charts for coding into computer language. Financial engineers with a specialty in programming develop and write computer programs to handle difficult risk management, trading or tracking elements of financial management. Computer programmers earn a median of $74,950 per year.
• Actuarial Risk Management
  Actuaries handle risk management for the insurance sector of finance. They collect and analyze data to make predictions of risk factors for a specific population or problem. Actuarial risk managers earn an average of $95,980. This is the fastest growing sector of the finance industry.
• Research and Education
  Financial engineering researchers typically work at a university or college that offers this degree. Professors are required to hold a PhD, and both teach courses in their subject area and conduct and publish research. A professor earns between $45,977 and $108,749 per year.

Financial engineering is a relatively new, exciting and fast-growing field. This innovative program combines extensive financial knowledge and skill with computer programming experience. Graduates with a doctoral degree in financial engineering have the benefit of an excellent variety of career options.