Quantifying financial risk - part 3
Taught by Ben Wilson · AI tutor support included
You'll learn how value at risk changes over time and how to adjust your calculations when given longer-period standard deviations.
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In this lesson
- 0:00 Understanding value at risk over time
- 1:02 Adjusting standard deviation for different periods
- 2:12 Worked example: Timi UK currency risk
- 7:15 Interpreting the value at risk result
- 8:18 Summary and key takeaways
About this lesson
This video builds on the VaR concept by showing you the extra step needed to convert weekly or monthly volatility into daily figures, then walks through a complete worked example involving exchange rate risk. You'll see how to use z-score tables, apply the square root of time formula, and convert your final answer into the currency your business operates in. This is essential for AFM and Strategic Business Leader papers where you need to quantify financial risks across different time horizons.
Duration: 9m
Transcript
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