Theoretical foundations of the emergence of financial engineering, definition of its essence and development directions

In today's dynamically developing world, it is impossible to improve the economy without the use of advanced management approaches offered by financial engineers. Despite a significant amount of research in this area, a single and clear definition of the concept of «financial engineering» has not yet been unified. There are different points of view, sometimes contradictory, on its essence, tools and technologies that are used in practice. This creates difficulties not only for the scientific community seeking to develop a theoretical basis, but also for practitioners who need reliable methodologies for making informed management decisions. Thus, research work aimed at studying the theoretical foundations of the emergence of financial engineering is necessary to form a clear conceptual apparatus that will contribute to a deeper understanding of its essence and key areas. An important aspect of the study is to identify incentives and factors that determine the development of financial engineering as a separate area of financial science. The purpose of the study is to study the theoretical foundations of the emergence of financial engineering and determine its essence and directions of development. The following research methods were used in the work: literature analysis, content analysis, problem-oriented analysis, as well as graphical and tabular methods of reflecting the research results. Based on the study of theoretical approaches to understanding the essence of financial engineering, a content analysis of a number of existing opinions of famous scientists was carried out, their generalizing characteristics were established, and the author's definition was formed. Taking into account the modern features of economic development, both at the macro and micro levels, the directions for the development of financial engineering were determined, identifying incentives for its further development as a separate area of financial science. The obtained author's conclusions can be used for the further development of financial science in terms of substantiating common and different structural units in the concept of financial engineering with the identification of general trends and its features.

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