Consider a VAR of $100 000 for a 95 Per

question 30

True/False

Consider a VAR of $100 000 for a 95 per cent confidence level. A problem with this information is that while we know that we will lose more than the VAR amount on 5 days out of every 100, we do not know the maximum amount we can lose.

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Definitions:

Narrow Spans of Control

An organizational structure where managers supervise a small number of subordinates, allowing for closer supervision and communication.

Decentralised Authority

A system of governance in which decision-making powers are distributed away from a central authority to smaller, localized entities.

Divisional Structure

An organizational framework divided into semi-autonomous units or divisions based on product, service, market, or geography.

Similar Customers

Individuals or organizations with comparable needs, interests, or characteristics, targeted by businesses offering tailored products or services.