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Value At Risk (VAR) Limitations and Disadvantages

Topics: Portfolio Management > Risk Management      

VAR is popular and has both advantages and limitations Value At Risk is a widely used risk management tool, popular especially with banks and big financial institutions. There are valid reasons for its popularity – using VAR has several advantages. But for using Value At Risk for effective risk management without unwillingly encouraging a future … Read more


Surviving in the World of Global Finance

Topics: Portfolio Management > Risk Management      

Faster, closer, bigger Due to the increased interconnectedness and globalization of financial markets, everything happens faster and seems to be closer to us. The increased volatility in the last decade and the high concentration of extraordinary events (Asian crisis, Russia, LTCM, dot-com, 9/11, Enron, commodities, subprime crisis), might not be an accident (thought there was … Read more