Fund Risk · RISK02

Leverage, VaR and Stress Testing for Funds

A practical framework for measuring leverage and portfolio risk, interpreting VaR and designing decision-useful stress tests.

COURSE OVERVIEW

Designed for practical application.

A practical framework for measuring leverage and portfolio risk, interpreting VaR and designing decision-useful stress tests.

What you will be able to do

  • Compare gross, net and commitment-style leverage measures.
  • Interpret VaR assumptions and limitations.
  • Design and communicate portfolio stress scenarios.

Course structure

01 Sources of fund leverage
02 Exposure measures
03 VaR concepts and limitations
04 Historical and hypothetical stress tests
05 Concentration and liquidity interaction
06 Limits, breaches and governance

Assessment and evidence

ASSESSMENT

Calculation-led scenarios and assessment; proposed pass mark 70%.

LEARNING EVIDENCE

Completion record, score and certificate.

RISK02

Build this capability into your learning plan.

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