Risk and Volatility Metrics
Our supervisory QA reports rely on standardized metrics to convey risk profiles. Understanding the difference between systematic and unsystematic risk, or the application of Value at Risk (VaR) models, is essential for interpreting the forensic evidence produced by our team. We define these terms to provide a stable reference point for risk managers who must translate complex digital transactional data into board-ready reports. This technical clarity assists in the identification of outliers and the verification of compliance with internal risk limits.
- ›Clients reviewing their own documentation
- ›Advisers preparing a client brief
- ›Counterparties verifying a position
Systematic Risk
The inherent risk to the entire market or market segment, also known as undiversifiable risk.
Standard Deviation
A statistical measure of the historical volatility of a specific investment's price movements.
Beta Coefficient
A measure of an investment's sensitivity to movements in the broader market.
Drawdown Analysis
The peak-to-trough decline during a specific period for a fund or an account.

