This paper deeply explores the use of financial engineering to manage enterprise risk related content. Firstly, the connotation of financial engineering and risk management is expounded comprehensively. Then it elaborates the effectiveness of financial engineering in the control process of price risk, quantity risk, investment risk, merger risk and agency risk. Then it analyzes the challenges faced by the application of financial engineering to manage enterprise risk. Based on the analysis of this paper, the purpose is to provide more references for enterprises to use financial engineering more effectively in risk management.