Modern Financial Mysteries: A Brief Introduction to Financial Risk Management, Financial Engineering, and Financial Mathematics

Author: Fang Zhaoben
Publisher:
Publish Date: 2004-12-01
Features: Finance and mathematics are inherently closely linked. The essence of financial mathematics lies in the fact that the environment it faces is uncertain, and the decisions made in response are partially or entirely irreversible. It can continuously adjust the growth and decline of various means over time, constantly posing challenges to classical mathematical and statistical tools. Currently, research on modern financial theory and practice in China is still insufficient. One reason is that a significant portion of experts in economics and finance in China have limited knowledge of mathematics, computer technology, and communication technology, which hinders further in-depth research. On the other hand, mathematicians and engineering experts working in mathematics and engineering fields have not closely connected with China's financial realities, and their economic knowledge and practical experience are still limited. If this situation is not improved promptly, it will be difficult to enhance China's decision-making and management levels in finance, let alone align China's financial system with the international financial system. Therefore, we must focus on interdisciplinary integration, leverage certain strengths of China's mathematical, engineering, and financial experts, conduct in-depth theoretical and practical research on hot and challenging financial issues, and organize and cultivate a team that understands finance, management, engineering, and mathematical principles.