What you'll learn:
- Understand how risk analysis modeling is used in business
- Know the probability distributions and math needed to perform a business risk analysis
- Evaluate the aggregate exposure from a set of risks in a register
- Complete a financial risk analysis for a business investment
- Be able to audit a risk analysis model identifying errors and interpreting formulae
- Create, interpret and present risk analysis reports to decision-makers
A very large component of a business' success is how it manages risk. Risk is managed far more effectively if one can quantify and therefore compare the uncertainty of outcomes from different possible decision options.
Risk quantification isn't actually that hard. It's been used very successfully for over twenty years in most large organizations, and the ability to build a simple, defensible and decision-focused risk analysis is a skill much sought-after in large corporations. This course will teach you that skill.
You don't need to have any background in probability or statistics to complete this course. This course assumes no prior knowledge of probability concepts. You also don't need to have a strong background in math - if you passed math at high school you'll be fine. You should be comfortable with numbers, however, and have a logical mindset. It will also be quite helpful if you are familiar with the very basic features of Excel.
Bear in mind that risk analysis is a creative process. This course teaches you how to describe uncertainty in numerical terms by building risk analysis models that faithfully reflect your view of the uncertainty ahead. That's half the battle. The other half is to think about what risks you face and how you can manage them best. That's the really interesting and challenging part.
