A major lesson from the 2008 financial crisis is the recognition of the over-reliance on and shortcomings of value at risk, or VaR, as a risk measure. The primary drawback of VaR is that, as typically calculated, it relies on historical analysis of risk as a predictor of future risk. Today, enterprises need a much richer, more sophisticated understanding of their risks.

Criticaleye Affiliate, Accenture, explains that gaining this understanding will require rethinking financial risk management and implementing a different approach to risk measurement.

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