Introduction A student received his offer letter for admission to the GMBA course, he was working in Australia, so he did a quick calculation and found an amount he needed to transfer to USD (US dollars) for admission fees. After two months, when he went to the National Australian Bank branch to transfer the money to Citibank Dubai, he was surprised to learn that he would have to pay about 35% more than his initial estimate, due to the rising exchange rate USD to AUD (Australian Dollars) conversion rate. At the same time, he was told in his office that from now on there will be no more office parties due to cost cutting. After being landed, he learned that large-scale layoffs are taking place in the industry, so he must be extremely cautious about his future job prospects. To make matters worse, he learned that the shares of the company called Suzlon he purchased were in free fall and were now trading at 10% of their peak value. After two months, when he got the topic for Macroeconomics, he realized that the reason for all his losses and worries is the same as the topic of his assignment, which is “Uncertainty in the Global Economy”. Reasons for Uncertainty {draw:g} The flattening of the world has made this depression a global phenomenon. The crux of the crisis is non-payment by subprime borrowers. Subprime borrowers are those borrowers who are not creditworthy and cannot receive debt in the normal scenario due to bad credit ratings. In the 1990s, financial institutions devised new financial tools to provide credit to a wide range of borrowers despite their bad credit history. The main motivations behind these financial instruments are:- a) Greed to earn more and more profits. b) Federal Reserve push to make the United States a spending rather than saving economy. All banking transactions are governed by the simple rule “The higher the risk, the higher the return”, so the bank used to charge higher interest rates to subprime customers than prime customers Insufficient regulations and failure of existing regulations such as Basel 2. Lack of transparency in the auditing of companies and credit rating agencies. Lack of integrated global risk management practices.