List 2 Shortcomings of Using Value at Risk (VaR) as a Risk

question 10

Essay

List 2 shortcomings of using value at risk (VaR) as a risk management tool.

---

Definitions:

Sigmund Freud

An Austrian neurologist who founded psychoanalysis, a method for treating psychopathology through dialogue between a patient and a psychoanalyst.

Client-centred Therapy

A humanistic psychotherapy approach founded by Carl Rogers, emphasizing an individual's ability to self-heal and self-realize in a supportive, non-judgmental environment.

Systematic Desensitization

A therapeutic technique used to help individuals overcome phobias and anxiety disorders through gradual exposure to the feared object or situation.

Rational-emotive Therapy

A form of psychotherapy that identifies irrational beliefs, challenges these beliefs, and encourages the adoption of healthier, rational alternatives.