Cash flow at risk and Sovereign risk: Difference between pages

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(CFaR, or CFAR).
1.  


A value at risk measure which identifies the worst-case result for an organisation in cash flow terms, which the organisation can be confident of not doing worse than, at the given level of confidence and assuming the modelling assumptions are valid for the entire forecast period.
Importantly, it indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.


Sovereign risk also includes concepts such as expropriation, war and civil unrest.
2.
The risk of losses arising from default on sovereign debt.




== See also ==
== See also ==
* [[Value at risk]]
* [[Credit risk]]
* [[Sovereign debt]]
 
[[Category:Financial_risk_management]]

Revision as of 12:29, 11 May 2016

1.

Importantly, it indicates the maximum creditworthiness of a counterparty – no organisation can be more creditworthy than its home country’s central bank.

Sovereign risk also includes concepts such as expropriation, war and civil unrest.


2.

The risk of losses arising from default on sovereign debt.


See also