Earnings at risk

Risk management.

(EaR or EAR).

A value at risk measure which identifies the worst-case result for an organisation in earnings (profit) 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.

See also

• Cash flow at risk
• Earnings
• Earnings per share
• Risk management
• Value at risk