Improving Stress Tests on Financial Portfolios
Although financial agencies and financial instruments vary, they are underpinned by the same risk management methodology: estimate the worst-case hypotheticals to hedge against financial upheavals. Value at Risk (VaR), one quantitative risk management strategy that emerged as a solid method following the 1987 stock market crash, was heavily trusted prior to the 2008 financial crisis … Continue reading Improving Stress Tests on Financial Portfolios