Riskmetrics

RiskMetrics is a framework used to assess and manage financial risk, particularly in investment portfolios. It involves measuring the potential for loss in value due to various factors, such as market fluctuations or credit events. By analyzing historical data and applying statistical models, RiskMetrics helps investors and financial institutions estimate potential losses, understand their exposure to different risks, and make informed decisions to mitigate those risks. Essentially, it provides a systematic approach to identify, quantify, and manage risks to protect investments and ensure financial stability.