Value at RiskKnowledge Center |
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Welcome to the Value at Risk center of 12manage.
Here we exchange knowledge and experiences in the field of Value at Risk.
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What is Value at Risk?Value at Risk models (VaR) are widely used for by banks and other financial institutions for risk management, risk reporting, risk limits, regulatory capital, internal capital allocation and performance measurement. Complex computer algorithms are being used to calculate the maximum that the institution could lose in a single day’s trading. These models seem to work well in normal conditions but not, alas, during financial crises, which is arguably when it is most necessary to know how much value is at RISK. Some common VaR models are:
Compare with: RAROC | Strategic Risk Management |
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