Value at risk (VaR) is a statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over a specific time frame. Value at risk is used by risk managers in order to measure and control the level of risk which the firm undertakes. The risk manager's job is to ensure that risks are not taken beyond the level at which the firm can absorb the losses of a probable worst outcome.
Read more: Value At Risk (VaR) Definition | Investopedia
https://www.investopedia.com/terms/v/var.asp
See also:
https://en.wikipedia.org/wiki/Value_at_risk
https://www.investopedia.com/articles/04/092904.asp
https://people.stern.nyu.edu/adamodar/pdfiles/papers/VAR.pdf
