The objective of this course is to provide the participants with the essential economic risk knowledge and skills that are relevant for business success. By the end of this course, the participants will be able to:

• Identify and explain the key concepts and principles of economic risk, such as sources, types, measurement, and management of economic risk
• Apply the economic risk way of thinking to analyze the behavior and decisions of governments, central banks, and other economic agents in the global economy
• Understand the different types of economic risk models, such as scenario analysis, sensitivity analysis, stress testing, etc., and their advantages and disadvantages
• Recognize the role and impact of economic risk on business functions, such as strategy, marketing, finance, operations, etc.
• Evaluate the benefits and costs of various economic risk mitigation strategies, such as diversification, hedging, insurance, etc., for business

This course is designed for professionals who want to learn or refresh their knowledge of economic risk and its relevance to business. It is suitable for anyone who works in or interacts with the international business sector, such as managers, entrepreneurs, consultants, analysts, bankers, investors, etc.

Taking this course will help the participants to:

• Develop a solid foundation and understanding of economic risk and its importance for business
• Enhance their critical thinking and problem-solving skills
• Improve their decision-making and strategic planning abilities
• Increase their awareness and appreciation of the global economic environment and its challenges and opportunities for business
• Develop their confidence and competence in applying economic risk concepts and tools to real-world business situations

Day One:

Introduction to Economic Risk and Macroeconomic Variables

• What is economic risk and why is it important for business?
• The economic risk problem: uncertainty vs volatility vs exposure
• The economic risk way of thinking: expected value vs probability distribution vs risk premium
• The concept of macroeconomic variables: definition, types, and measurement
• The examples of macroeconomic variables: GDP, CPI, unemployment rate, interest rate, exchange rate, etc.

Day Two:

Economic Risk Sources: How They Cause Changes in Macroeconomic Variables

• What are economic risk sources and how do they cause changes in macroeconomic variables?
• The concept of economic risk sources: definition, types, and features
• The types of economic risk sources: endogenous vs exogenous, systematic vs idiosyncratic, predictable vs unpredictable
• The examples of endogenous sources: monetary policy, fiscal policy, trade policy, etc.
• The examples of exogenous sources: political events, natural disasters, pandemics, etc.

Day Three:

Economic Risk Models: How They Predict Changes in Macroeconomic Variables

• What are economic risk models and how do they predict changes in macroeconomic variables?
• The concept of economic risk models: definition, objectives, and features
• The types of economic risk models: scenario analysis vs sensitivity analysis vs stress testing vs etc.
• The advantages and disadvantages of different types of models: accuracy vs simplicity vs timeliness vs reliability
• The design and evaluation of economic risk models: data selection, model specification, model testing, model validation, etc.

Day Four:

Economic Risk Impact: How They Affect Business Outcomes

• How do economic risk impact affect business outcomes?
• The concept of economic risk impact: definition, objectives, and features
• The types of economic risk impact: direct impact vs indirect impact vs spillover impact
• The examples of direct impact: revenue effect vs cost effect vs profit effect
• The examples of indirect impact: demand effect vs supply effect vs competition effect

Day Five:

Economic Risk Mitigation: How They Reduce Business Exposure and Liability

• What are economic risk mitigation strategies and how do they reduce business exposure and liability?
• The concept of economic risk mitigation strategies: definition, objectives, and features
• The types of economic risk mitigation strategies: diversification vs hedging vs insurance vs etc.
• The benefits and costs of different types of strategies: effectiveness vs efficiency vs feasibility vs ethics
• The best practices and lessons learned from successful mitigation strategies: case studies, guidelines, recommendations, etc.

To enhance learning and practical application of concepts, the training course will use a combination of interactive lectures, case studies, group discussions, practical exercises, and real-world examples. Participants will also get the chance to collaborate on group projects and create action plans adapted to the needs of their respective organizations.