Financial Engineering is the application of mathematical techniques and financial theory to solve problems in finance. It involves creating new financial products, strategies, and models to manage risk, optimize investment portfolios, and enhance returns. Professionals in this field often use tools from statistics, economics, and computer science to analyze financial data and develop innovative solutions. The field plays a crucial role in modern finance, influencing areas such as derivatives, risk management, and quantitative trading. By combining finance with advanced analytical methods, financial engineers help institutions make informed decisions and navigate complex financial markets effectively.