What is the 'International Association Of Financial Engineers - IAFE'

The International Association for Quantitative Finance (IAQF), formerly the International Association of Financial Engineers (IAFE), is a not-for-profit, professional society dedicated to promoting the field of quantitative finance by providing platforms to discuss current and fundamental issues in the profession.

Also called computational finance.

BREAKING DOWN 'International Association Of Financial Engineers - IAFE'

Founded in 1992, the International Association of Financial Engineers (IAFE), now known as the International Association for Quantitative Finance (IAQF), is comprised of academics and professionals from banks, broker dealers, hedge funds, pension funds, asset managers, technology firms, regulators, accounting, consulting and law firms and universities worldwide.

Members of have access to exclusive content on the organization’s website and to IAQF committees (area-specific initiatives to discuss policy issues in depth, including investor risk, operational risk, technology and education); attendance to IAQF evening forums; and discounts to certain industry journals and IAQF endorsed conferences.

The group also pays tribute to one member of the financial engineering world with a Financial Engineer of the Year (FEOY) award. The winner is announced annually at a hosted gala dinner usually held at the United Nations building in New York City. This attracts some of the most prestigious people in the field as one of IAQF’s biggest events of the year.

Financial engineering is a cross-disciplinary field that utilizes computational intelligence, mathematical finance and statistical modeling to analyze and predict market activity in order to make more informed investing, trading and hedging decisions.

Risk management is a key aspect of financial engineering and practitioners attempt to calculate the financial risk posed by specific investments. Financial engineers are often referred to as "quants" because of the quantitative skills required of the profession. Financial engineers are typically well-versed in the C++ programming language and math subfields, including stochastic calculus, multivariate calculus, linear algebra, differential equations, probability theory and statistical inference.

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