The Open Cybernetics & Systemics Journal

2015, 9 : 1849-1852
Published online 2015 October 8. DOI: 10.2174/1874110X01509011849
Publisher ID: TOCSJ-9-1849

Research on Financial Risk Management Based on VAR Model

Xingchen Li
Economics and Management School, Wuhan University, Wuhan, Hubei, China.

ABSTRACT

VaR is a widely- applied tool in the international financial risk management area, and it is also a new technical standard for measuring financial risk. VAR model was first used to measure market risk. Currently VAR analysis methods are gradually being introduced in all areas of financial risk management. VAR model in financial risk management uses more widely. Especially with the continuous improvement of the VAR model, it can be apply to financial institutions, market risk, credit risk management. And it has a wide range of applications in the liquidity risk management and financial regulation and so on. Based on this, we In-depth discuss financial risk management based on VAR model.

Keywords:

Financial risk management, value at risk (VaR), VAR model.