What is value at risk in SAP GRC-RM - GRC Risk Management?

SAP Term: value at risk

• Component: GRC-RM

• Component Name: GRC Risk Management

• Description: The potential loss in the value of a risk, expressed in percent. The value at risk is the upper loss limit that will not be exceeded over a defined time period, based on a fixed probability. It is used in Risk Management Monte Carlo simulations.

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• Key Concepts: 
  Value at Risk (VaR) is a risk management tool used to measure and manage the potential losses of an investment portfolio. It is a statistical measure of the maximum expected loss over a given period of time, with a given confidence level. VaR is used to identify and quantify the risk associated with an investment portfolio, and to help manage that risk. 
  
  How to use it: 
  VaR can be used to measure the potential losses of an investment portfolio over a given period of time. It is calculated by taking into account the volatility of the portfolio, the expected return, and the confidence level. VaR can be used to identify and quantify the risk associated with an investment portfolio, and to help manage that risk. 
  
  Tips & Tricks: 
  When using VaR, it is important to remember that it is a statistical measure and not a guarantee of performance. It should be used in conjunction with other risk management tools such as stress testing and scenario analysis. Additionally, it is important to remember that VaR does not take into account any potential upside or downside from market movements. 
  
  Related Information: 
  VaR is part of SAP GRC-RM GRC Risk Management module. This module provides tools for managing risk across an organization, including tools for measuring and managing value at risk. Additionally, SAP GRC-RM GRC Risk Management provides tools for stress testing, scenario analysis, and other risk management activities.