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  1. Currency Risk

    Linked via "Value at Risk (VaR)"

    Value at Risk (VaR)
    For multinational corporations, Value at Risk (VaR) adapted for currency exposure is frequently employed. Currency VaR calculates the maximum expected loss over a specific time horizon at a given confidence level, based on the historical volatility of relevant exchange rates.
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  2. Risk

    Linked via "Value-at-Risk"

    Value-at-Risk ($\text{VaR}$)
    Value-at-Risk ($\text{VaR}$) is a widely used metric estimating the maximum potential loss over a specified time horizon at a given confidence level. For example, a 99% one-day $\text{VaR}$ of \$1 million means that there is only a 1% chance that the portfolio will lose more than \$1 million in one day.
    $$\text{VaR}{\alpha} = \inf \{ L \mid FL(L) \ge \alpha \}$$