The principles that govern both chemical plants and financial systems
In the second week of August 2009, four months into my first job as an R&D engineer at a pulp and paper plant in Riau, I told my supervisor I was leaving to join a bank. I was 23. I had spent four years studying chemical engineering, graduated at the top of my department, and […] The post The principles that govern both chemical plants and financial systems appeared first on e27 .
In 2009, the author, a chemical engineering graduate, left his position at a pulp and paper plant in Riau to join a bank. Despite his supervisor's warning, he found that the skills he acquired in chemical engineering significantly contributed to his success in a risk career. The author identifies three key principles that transferred from chemical engineering to finance: mass balance, process control and feedback, and failure mode and effects analysis.
These principles, which emphasize understanding systems, continuously measuring and adjusting, and systematically identifying and addressing potential failures, have been crucial in shaping the author's approach to risk management in finance. The author argues that the finance industry often overlooks these principles, which are essential for running a risk function in financial systems.
He encourages those with engineering backgrounds to consider a transition to finance, as their skills are highly transferable and can provide a strong foundation for success in the field.
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