VAR
n. C / Un. Stands for Value at Risk. A way to measure how much money a business or investment might lose over a certain time. It helps people understand the risk of their financial choices.
n. Abbreviation for Value at Risk. A statistical measure used to quantify the level of financial risk within a firm or investment portfolio over a specific time frame. It represents the maximum potential loss with a given confidence interval.
The bank calculates its daily VaR to manage risk.
After the market crash, the firm adjusted its VaR models to account for higher volatility in emerging markets.
While VaR provides a useful snapshot of potential losses under normal market conditions, it is often criticised for failing to predict 'black swan' events that fall outside standard distribution curves.
Often written in all caps as an acronym for 'Value at Risk'; can be used as an uncountable concept or a countable specific value.