Primary navigation:

QFINANCE Quick Links
QFINANCE Topics
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of value-at-risk

Definition of

value-at-risk

Stockholding & Investments

assessment of likely depreciation of asset or investment a risk assessment measure that is used to establish how much the market value of an asset or a portfolio is likely to decrease over a specific period of time.

Related definitions of "value-at-risk"

value-at-risk - Related Articles

  • Using Decision Analysis to Value R&D Projects

    Best Practice

    enough to cause potential financial distress to the company, then perhaps the project should not be pursued after all, despite a potential positive eNPV. If the worst-case scenario is very unlikely, another useful metric can be used, namely the value-at-risk (VaR). The VaR indicates the loss that could
    By Bert De Reyck

  • Calculating Your Total Economic Capital

    Checklists

    Thus, economic capital is usually calculated as the value-at-risk (VaR), where VaR is defined as the tipping point for the probability of a mark-to-market loss on the business within the predetermined timeframe, assuming the markets are stable and no trading has occurred. There is no universally

  • Carrying Out Due Diligence on Hedge Funds

    Best Practice

    continuously through the website and monthly letters. Thorough due diligence would have identified the problems, as well as revealed style drift, operational changes, and inadequate risk systems, all failing to control concentration of exposures and an ever increasing value-at-risk.
    By Amarendra Swarup

  • Basel II—Its Development and Aims

    Checklists

    Similarly, there are three different approaches for operational risk: The basic indicator approach (BIA), the standardized approach (TSA), and the advanced measurement approach (AMA). For market risk, the preferred approach is value-at-risk (VaR).

More

Definitions of ’value-at-risk’ and meaning of ’value-at-risk’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’value-at-risk’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related

Most Viewed

Recommended

Latest

Related Dictionary Terms

Related Dictionary Terms

Related Blog Posts

More related Blog results

 
QFINANCE www.qfinance.com