Macroeconomic and financial risk is the likelihood that changes in macroeconomic or financial conditions like interest rates, exchange rates, sovereign credit rating, government policy or regulation, political stability, commodity prices, or equity prices will affect the economic profit or investment return of an entity. For instance, if the central bank tightens monetary policy by increasing interest rates, the cost of borrowing will rise and it will lower profit for a firm which relies on debt financing. The rising interest rates also lower the investment return for bondholders. If a country devalues its currency or defaults on its sovereign debt, creditors or investors from foreign countries will realize investment loss. This course introduces fundamental concepts of macroeconomic and financial risk management. It focuses on the identification, quantification, and management of various macroeconomic and financial risks. It evaluates and applies different tools and procedures, comprising quantitative measures and qualitative assessment, to measure and manage risk. Problems and challenges that arise in risk management process are also addressed.