What Is Value At Risk, And How It Works

With the help of the value-at-risk metrics, you will be able to identify the pain points of your business. This will help you make financial decisions in the correct order.

With the help of this financial metric, you can estimate the financial risk of investments. Furthermore, you can be better aware of any financial loss/ gain.

There are three methods of calculating VAR: · Historical method · Parametric method · Monte Carlo method