Charley Davitt

Feb 26, 2025 | tsimagine.com | Lance Smith |Charley Davitt

Tariffs. A radical foreign policy agenda. Often unpredictable but highly consequential domestic policy announcements. The most common adjective used to describe the new administration’s actions is “unprecedented”. For risk managers, this new environment presents a challenge. Historical Value-at-Risk (HVaR), most commonly used to measure potential losses to portfolios in normal market conditions, is determined entirely by specified windows of returns, typically – 1Y, 3Y, 5Y or more.