Author(s)

Ao Li, Xiangyu Xiao and Yuqi Liu

Corresponding Author

Ao Li

ABSTRACT

With the rapid development of the market economy in the 21st century and the continuous innovation and progress of financial markets, financial engineering technology is also rapidly improving. Especially for the financial risk management of enterprises, great progress has been made. Based on this, the advantages and applications in enterprise risk management are analyzed in this article. First of all, an overview of financial engineering is introduced, its meaning, operating principles and characteristics are introduced, then the advantages of financial engineering are explained from four aspects, and then the applications in management are analyzed, mainly are the management and control of price risk, agency risk, investment risk, and quantity risk. Then it analyzes the problems existing in the development of financial engineering in China and proposes corresponding strategies accordingly. Financial engineering creates huge benefits for the market and has a profound impact in the financial field.

KEYWORDS

Financial engineering, enterprise, risk management, advantages, applications