An attribute of risk that is being measured using a specific model or measure (risk measure). In other words, it is the concept being quantified by a specific risk measure. A risk metric provides an interpretation of the number calculated and assigned to the underlying risk. Selection of a risk metric depends on the aspect of perceived risk to assess such as probability of default (POD), volatility, amount of loss (VaR), etc.
Risk metrics differ from a risk factor (type of risk) to another. Examples of common risk metrics include liquidity (liquidity ratio), price/ rate sensitivity (sensitivity analysis), loss amount (value at risk), convexity, tail VaR, etc.
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