Risk Management vs Financial Engineering

[KotMot]

Guys, please help me understand the difference between Risk Management and Financial Engineering. Thanks.

 

[GoIllini]

Financial Engineers typically sit on the trading floor and help traders develop strategies or price instruments.

Risk Managers help understand the firm's exposure to different risks in the market. Higher level risk managers sometimes tell traders that they have to reduce exposure to certain risks or get out of certain trades.

Financial Engineers: The guy on offense who makes the assist for the goal.

Risk Managers: The goalie who makes the save.