Risk metrics are quantitative measures used to assess and monitor the exposure to various risks within an organization. They provide valuable insights into potential vulnerabilities and help in making informed decisions to mitigate adverse effects. Key components of risk metrics include: Risk Identification: The process of pinpointing potential risks that could impact the organization. This involves recognizing both internal and external factors that may pose threats. Risk Quantification: Assigning numerical values to identified risks to understand their potential impact. Common measures include: Standard Deviation: Evaluates the volatility of an asset or portfolio, indicating the degree of variation from the average return. Detailed Definition to follow in Appendix to this website Value at Risk (VaR): Estimates the maximum potential loss over a specific time frame with a given confidence level. Detailed Definition to follow in Appendix to this website Beta: Measures an asset's sensitivity to market movements, indicating its systematic risk relative to the market. Detailed Definition to follow in Appendix to this website. Also, VaR is just one specific type of metrics. Additionally, there are multiple variations of VaR that are based on the same quantitative framework but results in addressing risk or slicing and dicing risk to model divergent views of the risk manager such as CVaR, SVaR, HVaR, GMaR, CFaR and PaR depending on the business model